Insolvency Bill sets 14-day deadline for admission orders

This Bill amends the Insolvency and Bankruptcy Code, 2016 to clarify definitions, streamline the admission of insolvency applications, and introduce specific rules for withdrawing applications and supervising liquidation processes.

Corporate debtors, financial creditors, operational creditors, resolution professionals, interim resolution professionals, committees of creditors, Adjudicating Authorities, and the Insolvency and Bankruptcy Board of India (IBBI).

• Clarifies that a 'security interest' must be created by an agreement between parties and does not include interests created merely by operation of law.
• Defines 'service provider' to include insolvency professionals, agencies, and information utilities registered with the Board.
• Defines 'avoidance transaction' and 'fraudulent or wrongful trading' for the purposes of the Code.
• Mandates that the Adjudicating Authority must admit or reject an application within 14 days, with a requirement to record reasons in writing if delayed.
• Allows the withdrawal of an admitted application only with the approval of 90% of the committee of creditors, and prohibits withdrawal before the committee is constituted or after the first resolution plan invitation is issued.
• Requires the committee of creditors to supervise the conduct of the liquidation process by the liquidator.
• Mandates that the resolution professional proposed in the application by a financial creditor shall be appointed as the interim resolution professional, provided no disciplinary proceedings are pending.

Written from the document by AI, and checked against it. The original below is authoritative.

The original document