Government Incorporates Panel Recommendations In Revised IBC Bill

The Centre has accepted all recommendations of a select committee in the revised Insolvency and Bankruptcy Code (IBC) Bill, which was taken up for consideration in Parliament.

The Ministry of Corporate Affairs (MCA) has incorporated the panel’s proposals, including a defined timeline for the National Company Law Appellate Tribunal (NCLAT) to dispose of appeals within three months. The Bill introduces provisions covering group insolvency, cross-border cases, and pre-packaged resolution for large companies. It also allows the transfer of assets of personal and corporate guarantors to lenders during the resolution process. Recommendations include codifying cross-border insolvency rules within the law and changes to creditor-initiated resolution processes, including lower voting thresholds. The revised Bill also includes provisions to decriminalise certain offences.

It clarifies that claims by central or state authorities will be treated as secured only if backed by contractual agreements. The IBC framework was enacted in 2016 to address corporate insolvency cases.