On April 04, 2021, the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 has been promulgated by the President in order to amend the Insolvency and Bankruptcy Code, 2016.
Key amendments discussed below:
- Proviso has been inserted in Section 4 relating to Application of Part II:
“Provided further that the Central Government may, by notification, specify such minimum amount of default of higher value, which shall not be more than one crore rupees, for matters relating to the pre-packaged insolvency resolution process of corporate debtors under Chapter III-A.”
- Insertion of new section 11A relating to Disposal of applications under section 54C and under section 7 or section 9 or section 10.
(1) Where an application filed under section 54C is pending, the Adjudicating Authority shall pass an order to admit or reject such application, before considering any application filed under section 7 or section 9 or section 10 during the pendency of such application under section 54C, in respect of the same corporate debtor. Disposal of applications under section 54C and under section 7 or section 9 or section 10.
(2) Where an application under section 54C is filed within fourteen days of filing of any application under section 7 or section 9 or section 10, which is pending, in respect of the same corporate debtor,then, notwithstanding anything contained in sections 7, 9 and 10, the Adjudicating Authority shall first dispose of the application under section 54C.
(3) Where an application under section 54C is filed after fourteen days of the filing of any application under section 7 or section 9 or section 10, in respect of the same corporate debtor, the Adjudicating Authority shall first dispose of the application under sections 7, 9 or 10.
(4) The provisions of this section shall not apply where an application under section 7 or section 9 or section 10 is filed and pending as on the date of the commencement of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021.
- Insertion of new Chapter III-A on Pre-Packaged Insolvency Resolution Process.