President approves ordinance on Insolvency and Bankruptcy Code

New Delhi: President Ram Nath Kovind on Thursday approved an ordinance to introduce changes to the Insolvency and Bankruptcy Code which is aimed at tightening the current framework amid rising number of insolvency cases.

The ordinance was approved by the cabinet on Wednesday.

The Code, which became operational in December last year, provides a market-determined and time-bound insolvency resolution process. Over 300 cases have already been approved by the National Company Law Tribunal (NCLT) to be taken up under the law, implemented by the corporate affairs ministry.

The corporate affairs ministry has already set up a 14- member committee to identify and suggest ways to address issues faced in implementation of the law.

The Insolvency Law Committee, chaired by Corporate Affairs Secretary Injeti Srinivas, will take stock of the implementation of the Code.

More than 300 cases have been admitted for resolution under the Code by the National Company Law Tribunal.

A case is taken up for resolution under the Code only after receiving approval of the NCLT for the same.

With Agency Inputs