To ensure swift approvals for resolution plans, the government panel has suggested amendments to the Insolvency and Bankruptcy Code including provisions related to time period taken for approval of resolution plans, avoidable transactions and wrongful trading.
The committee suggested that it should be mandatory for the National Company Law Tribunal (NCLT) to approve the plan within 30 days or else record its reasons for the delay in writing.
The ministry of corporate affairs on December 30, has sought public comments on the amendments proposed by the Insolvency Law Committee (ILC) The suggestions should reach the ministry of Corporate affairs by January 13, 2022. /LAB/SNG/