The Insolvency and Bankruptcy Code (Amendment) Bill, 2019

This Bill amends the Insolvency and Bankruptcy Code, 2016 to set a strict time limit for completing corporate insolvency resolution processes and to ensure fair treatment of creditors by mandating minimum payment levels based on liquidation values.

Corporate debtors, financial creditors, operational creditors, the Adjudicating Authority, the Committee of Creditors, and government authorities (Central, State, or local) owed statutory dues.

• Clarifies that a resolution plan may include corporate restructuring via merger, amalgamation, or demerger.
• Requires the Adjudicating Authority to record reasons in writing if it does not ascertain default or pass an order within the specified time.
• Mandates that the corporate insolvency resolution process must be completed within 330 days from the commencement date, including time taken in legal proceedings.
• Provides that if the process is not completed within the 330-day limit, it must be completed within 90 days of the Act's commencement.
• Allows the authorised representative of financial creditors to cast votes based on the decision of more than 50% of the voting share of the financial creditors they represent.
• Requires that operational creditors receive payment not less than the higher of their liquidation value or the amount they would receive under the priority order in section 53.
• Requires that financial creditors who do not vote in favour of the resolution plan receive payment not less than their liquidation value.
• Clarifies that an approved resolution plan is binding on the Central Government, State Governments, and local authorities owed statutory dues.
• Clarifies that the Committee of Creditors may decide to liquidate the corporate debtor at any time after its constitution until the confirmation of the resolution plan.

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