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ARTICLE · 22 NOVEMBER 2017

Noose Tightened By The Insolvency Laws

S.S. Rana & Co.
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S.S. Rana & Co.

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The resolution plan should come from resolution professional or any person, who can really rescue the insolvent business

IndiaInsolvency/Bankruptcy/Re-Structuring
S.S. Rana & Co. Advocates
S.S. Rana & Co. Advocates
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The efficacious implementation of the comprehensive and systematic Insolvency and Bankruptcy Code, 2016, (hereinafter referred to as "IBC") has instilled confidence in the creditors being a comprehensive, systemic and speedy reform thereby paving way for development and progress. The latest revision in the IBC by the Insolvency and Bankruptcy Board of India (hereinafter referred to as "IBBI") has further tightened the reins over the dishonest and fraudulent debtors by implementation of stricter policies controlling their conduct.

With the advent of the recent modifications, resolution applicants would be subject to more stringent scrutiny before approval of their insolvency resolution plans by the Committee of the Creditors (constituted by the Resolution Professional under the provisions of IBC). The amendments to regulations (Regulation 37, 38 & 39) empower Committee of Creditor to carry out due diligence of resolution plan submitted with respect to the insolvency

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