Kamal Ghorui
NEW DELHI: Finance minister Nirmala Sitharaman said amendments to the Insolvency & Bankruptcy Code (IBC) will help maximise value for stakeholders as the Lok Sabha passed the bill on Monday.She said the 12th Amendment seeks to strengthen the existing insolvency framework, as well as address practical challenges, and incorporate evolving global best practices. She added that the law has been a major factor in improving the health of the country’s banking sector.Citing extensive litigation by promoters as the main reason for delay, the FM said the bill has sought to speed up the process and avoid frivolous proceedings. Besides, the Creditor-Initiated Insolvency Resolution Process, which is a new out-of-court initiation mechanism with a compressed 150-day timeline, will also help. “We are ensuring workmen dues are not ignored,” she said.There is an enabling framework for group insolvency and cross-border insolvency to promote investor confidence, Sitharaman added.
