The Ministry of Corporate Affairs (MCA) vide its notice dated 23.12.2021 (notice) invited comments from the public on proposed changes to the Corporate Insolvency Resolution and Liquidation Framework under Insolvency and Bankruptcy Code, 2016.
The gist of the proposed changes is as follows:-
| Sr. No. | Gist of the Change | Concerned Section | Connected with | Para of the Notice |
| 1. | Submission of only IU authenticated records by the FCs financial creditors as prescribed by the CG | Section 7 | CIRP & Liquidation | Para 1.4 of the notice |
| 2. | Cooperation by parties for collection of data by IPR/RP w.r.t. to filing of applications connected with PUEF transactions | Section 19, 43-51, 66 & 67 | CIRP & Liquidation | Para 2.1(a)(i) of the notice |
| 3. | RP/LQ will be responsible for investigating the affairs of the CD for identification of PUEF transactions | Section 25, 35, 43-51, 66 & 67 | CIRP & Liquidation | Para 2.1(a)(ii) of the notice |
| 4. | The creditors (individually or in groups) can apply to the AA for PUEF transactions, if the RP/LQ fails to do so | Section 43-51, 66 & 67 | CIRP & Liquidation | Para 2.1(a)(iii) of the notice |
| 5. | Continuation of PUEF transactions proceedings after approval of resolution plan | Section 31, 43-51, 66 & 67 | CIRP | Para 2.1(b) of the notice |
| 6. | Threshold for the look-back period for PUEF transactions will now start from date of filing of the application for initiation of CIRP | Section 43-51, 66 & 67 | CIRP & Liquidation | Para 2.1(d) of the notice |
| 7. | Resolution Plan should mandatorily specify the manner of undertaking PUEF transactions proceedings and distribution of expected recoveries from it | Section 26 | CIRP | Para 2.1(c) of the notice |
| 8. | AA to approve/reject a resolution plan within 30 days | Section 31 | CIRP | Para 3.1(d) of the notice |
| 9. | Closure of the Voluntary Liquidation Process by way of a SR or members’ resolution and approval of creditors representing 2/3rd in value of the debt | Section 59 | Voluntary Liquidation | Para 4 of the notice |
| 10. | Central Government to prescribe a detailed framework for contribution to and utilisation of the IBC Fund. | Section 224 | Others | Para 5 of the notice |
Suggestion/comments, if any, along with brief justification may be submitted online therein at the below-mentioned weblink latest by 5:30 PM on 13.01.2022: https://ibbi.gov.in/webfront/public_on_proposed_changes_2016.php
MCA Notice dated 23.12.2021: https://ibclawreporter.in/wp-content/uploads/2021/12/MCA-Notice.pdf
