Introduction Of Pre-Packaged Insolvency Resolution Process Under The Insolvency And Bankruptcy Code, 2016

I. INTRODUCTION

The Upper House of Parliament in India, being the Rajya Sabha passed the Insolvency and Bankruptcy Code (Amendment) Bill, 2021 ("Amendment") on 3^rd August 2021 which introduces a Pre-Packaged Insolvency Resolution Process ("PIRP") within the scheme of the Insolvency and Bankruptcy Code, 2016 ("Code"). The Amendment had already cleared the Lower House of Parliament, the Lok Sabha on 28^th July 2021.

The Amendment replaces the Ordinance passed by the President of India on 4^th April 2021. At the time, the Ordinance was promulgated with a view to combat the impact of the COVID-19 pandemic on the Indian economy and protect micro, small and medium sized businesses from the onslaught of applications for commencement of corporate insolvency resolution process ("CIRP") under the Code. This was a step taken in addition to the temporary suspension of the CIRP mechanisms under the Code (as per Section 7, 9 and 10 of the Code) vide the Ordinance dated 24^th Marc