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The Tax Publishers Other Commercial/Labour Laws Insolvency and Bankruptcy Code, 2016--Amendment Ordinance Insolvency and Bankruptcy Code (Amendment) Ordinance, 2019 : Key Changes Pragya Lalwani The learned Author in this write-up seeks to elucidate major amendments made by the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2019 to the Insolvency and Bankruptcy Code, 2016 in order to preserve the purpose of the Code as to maximizing the value of a corporate debtor and maintaining the principle of a going concern. 1. Introduction With a motive to remove certain difficulties confronted during the corporate insolvency resolution process (CIRP) so as to achieve the object of the Insolvency and Bankruptcy Code, 2016, such as maximisation of the value of assets of persons and to promote ease of doing business in India, The President of India promulgated the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2019 on 28-12-2019 amending the Insolvency and Bankruptcy Code, 2016. The IBC (Amendment) Ordinance, 2019 amends the Code to provide immunity against prosecution of the corporate debtor under new management for the offences committed by the previous management; prevent action against property of the corporate debtor and frivolous triggering of CIRP by certain classes of financial creditors; and ensure that the substratum of the business of corporate debtor is not lost to continue as a going concern. It may lead to filling the gaps in corporate insolvency framework streamlining the CIRP. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Other Commercial/Labour Laws

Insolvency and Bankruptcy Code, 2016--Amendment Ordinance

Insolvency and Bankruptcy Code (Amendment) Ordinance, 2019 : Key Changes

Pragya Lalwani

The learned Author in this write-up seeks to elucidate major amendments made by the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2019 to the Insolvency and Bankruptcy Code, 2016 in order to preserve the purpose of the Code as to maximizing the value of a corporate debtor and maintaining the principle of a going concern.

1. Introduction

With a motive to remove certain difficulties confronted during the corporate insolvency resolution process (CIRP) so as to achieve the object of the Insolvency and Bankruptcy Code, 2016, such as maximisation of the value of assets of persons and to promote ease of doing business in India, The President of India promulgated the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2019 on 28-12-2019 amending the Insolvency and Bankruptcy Code, 2016. The IBC (Amendment) Ordinance, 2019 amends the Code to provide immunity against prosecution of the corporate debtor under new management for the offences committed by the previous management; prevent action against property of the corporate debtor and frivolous triggering of CIRP by certain classes of financial creditors; and ensure that the substratum of the business of corporate debtor is not lost to continue as a going concern. It may lead to filling the gaps in corporate insolvency framework streamlining the CIRP.