Insolvency and Bankruptcy Code (Amendment) Bill, 2019 passed in the Rajya Sabha

The Rajya Sabha has passed the Insolvency and Bankruptcy Code (Amendment) Bill, 2019. The Bill was introduced in the Upper House on July 24.

Among other changes, the Bill seeks to tweak provisions related to time limits, specifies minimum payouts to operational creditors under resolution plans, and specifies the manner in which the representative of a group of financial creditors should vote.

As per the Statement of Objects and Reasons, the Bill aims to address concerns surrounding undue delays cause by extensive litigation, seeks to ensure that all creditors are treated fairly, and to bring in clarity to the voting process of financial creditors represented by the authorised representative.