The Insolvency And Bankruptcy Code (Amendment) Act, 2021

The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 [“Ordinance”] was promulgated on the 4^th of April, 2021 as an amendment to the Insolvency and Bankruptcy Code, 2016 introducing the novel Pre-packaged Insolvency Resolution Process. This was done in response to a need of the hour, an efficient insolvency resolution process. Soon after, on 26^th of July, 2021, the Insolvency and Bankruptcy Code (Amendment) Bill, 2021 [“Bill”]was tabled in the Lok Sabha, scheduled to be moved for the House's deliberation as a replacement to the Ordinance. On 28^th of July 2021, the Bill was passed by the Lok Sabha, notably, without any discussion from the opposition.¹ On the 3^rd of August, 2021, Rajya Sabha proceeded to pass the Bill after a brief debate and a voice vote.² On the 11^th of August, 2021, the Bill received the assent of the President thus enacting the Insolvency and Bankruptcy (Amendment) Act, 2021 [“Amendment”] deemed to have come into force on the 4^th of