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, insolvency professionals, resolution professionals, liquidators, and the Adjudicating Authority (courts/tribunals).

• Clarifies that a 'security interest' must arise from an agreement between parties and not 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 use in the Code.
• Mandates that the Adjudicating Authority must admit or reject an application within 14 days, with a requirement to record reasons for any delay.
• Allows the withdrawal of admitted applications 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 liquidation process if initiated under Chapter III.
• Expands the duty of cooperation to include any person associated with the management or engaged in service contracts with the corporate debtor.

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