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ARTICLE · 09 SEPTEMBER 2019

Insolvency and Bankruptcy Code Update - August 2019

The amendment would enable the market to come up with dynamic resolution plans for value maximisation.

IndiaInsolvency/Bankruptcy/Re-Structuring

The Insolvency and Bankruptcy Code, 2016 (Code) was enacted with a view to consolidate and amend the laws relating to reorganisation and insolvency resolution in a time-bound manner for maximisation of value of assets, to promote entrepreneurship, availability of credit and balancing the interests of various stakeholders. The Code and its corresponding rules and regulations have been amended from time to time to address deficiencies and fine tune the Code for effectiveness and achieving its objectives.

The Insolvency and Bankruptcy Code (Amendment) Act, 2019 (Amendment Act) is the latest amendment to the Code. The Amendment Act received Presidential assent on August 5, 2019. The effective date of the Amendment Act has been notified as 16 August 2019.

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