IBC Amendment Bill tabled in Rajya Sabha, govt backs financial creditors

The Bill has proposed a time limit of 330 days for completion of the resolution process including the litigation

The government came out in support of financial creditors and spelled out concerns over extensive litigation causing undue delays in insolvency proceedings, while introducing the Insolvency and Bankruptcy Code Amendment Bill in the Rajya Sabha on Wednesday. 

The statement of object and reasons said the delays due to "extensive litigation" may hamper value maximisation, which goes against the spirit of the Code. The Bill also made a note of suggestions by various stakeholders that "if the creditors were treated on an equal footing, when they have different pre-insolvency entitlements, it would adversely impact the cost and availability of credit". 

The Supreme Court