Amendments in insolvency law will ensure greater timeliness for resolution process: Sitharaman

New Delhi, Aug 1 (KNN) With seven sections of the insolvency law proposed being amended through the Insolvency and Bankruptcy Code (Amendment) Bill, 2019, Corporate Affairs Minister Nirmala Sitharaman said that these amendments will ensure greater timeliness for resolution process, which has to be completed in 330 days.

The bill was passed by Rajya Sabha on Monday.

Moving the bill for passage in Lok Sabha, she said the changes would also bring in more clarity on various provisions, including time-bound disposal at the application stage for resolution plan and treatment of financial creditors.

As many as seven sections of the Code are to be amended.

Under the amended law, the Corporate Insolvency Resolution Process (CIRP) once started, has to be completed in 330 days, including litigation stages and judicial process.

Among others, the approved resolution plan would be binding on central and state governments as well as various statutory authorities.

Sitharaman said proposed amendments also responds to issues pertaining to financial creditors in the wake of a recent ruling with respect to financial and operational creditors.

Sitharaman quoted a Supreme Court judgment to say that with implementation of the Code, there is no longer a defaulter's paradise.