The government will soon float the cabinet amendments to IBC amendments; Bell is likely to be in the seasonal wind session

The government is scheduled to float on the cabinet memo during the next two weeks, which determines the main amendments to the insolvency and bankruptcy law (IBC), according to sources in the Ministry of Finance. The draft law is expected to be presented during the upcoming seasonal parliament session.

One of the main reforms is likely to be in consideration of the introduction of a decision led by creditors (CLRP) aimed at accelerating debt solution while reducing dependence on the NCLT law court. Contrary to the process of solving the current companies (CIRP), which involves large -scale judicial supervision, CLRP will enable financial creditors to take the initiative to solve non -assets. The government may also provide a 165 -day accuracy window, much shorter than the current limit for 330 days under CIRP, to facilitate the Swifter settlements.

Another main amendment seeks to extend the packed insolvency framework to major companies. This framework is originally designed for small, small and medium enterprises (MSMES), and this framework enables the fastest and most effective decisions. The expansion of its range to large companies is expected to simplify insolvency procedures and improve recovery rates.

In addition, the government explores the collective insolvency mechanisms to allow corporate groups to undergo a unified solution. The current fragmented approach, where each entity faces a set of separate procedures, often leads to inefficiency and long time tables. The unified frame can enhance coordination and improve results.

The government had previously thought about providing insolvency standards and a framework for insolvency on real estate, but the sources indicate that these proposals may require more consultations.

Meanwhile, discussions on (amending) bill companies (amending) the 2024 draft law will be continuing and the cabinet memo will be presented to this after the consultation process.