Pre-Packaged Insolvency Resolution Process Under The Insolvency And Bankruptcy Code

In the past one year, the impact of Covid-19 pandemic has been severely stressful on the Indian economy. There is no doubt that the insolvency procedure under the Insolvency and Bankruptcy Code is one of the major hit regions. To combat with this predicted low fall in the economy, one of the initiatives by the Government is introduction of Pre-Pack Insolvency Resolution for MSME sector under the Insolvency and Bankruptcy Code. The basic idea behind the making of Pre-Pack Insolvency is to save the time period taken in the whole resolution process, consensual restructuring and save judges from the burden of cases. In June, 2020 the Government of India had formed a subcommittee of the Insolvency Law Committee to provide the framework of pre- pack insolvency under the basic Insolvency and Bankruptcy Code structure and the Ordinance for the same was recently promulgated by the Government of India in the month of April, 2021 i.e. the Insolvency and Bankruptcy