The monsoon session of parliament was extended for ten days and the extended days will be remembered in history for passing the landmark Bill which made changes in the political map of India. The concluding days of the monsoon session also witnessed the passing of The Insolvency and Bankruptcy Code (Amendment) Bill, 2019 which has a far-reaching effect on the Indian economy.

The major expected Amendment which has not seen the daylight is the part which deals with Cross Border Insolvency. The Amendment has come up with significant improvements and clarifications in the area of Insolvency Law. Made clarification on the term corporate restructuring:

1. Clause (26) inserted in Section 5
   “Explanation– For the removal of doubts, it is hereby clarified that a resolution plan may include provisions for the restructuring of the corporate debtor, including by way of merger, amalgamation and demerger;”.
2. Clause (26) inserted in Section 5
   “Explanation– For the removal of doubts, it is hereby clarified that a resolution plan may include provisions for the restructuring of the corporate debtor, including by way of merger, amalgamation and demerger;”.
3. Mandatory time-bound disposal of Insolvency proceedings at Application Stage.
   The NCLT must find the existence of default within 14 days. In section 7 of the principal Act, in sub-section (4), the following proviso shall be inserted, namely– “Provided that if the Adjudicating Authority has not ascertained the existence of default and passed an order under sub-section (5) within such time, it shall record its reasons in writing for the same.”
4. A deadline for completion of the corporate insolvency resolution process.
   In section 12 of the principal Act, in sub-section (3), after the proviso, the following provisos shall be inserted, namely:
   • “Provided further that the corporate insolvency resolution process shall mandatorily be completed within a period of three hundred and thirty days from the insolvency commencement date, including any extension of the period of corporate insolvency resolution process granted under this section and the time taken in legal proceedings in relation to such resolution process of the corporate debtor.
   • Provided also that where the insolvency resolution process of a corporate debtor is pending and has not been completed within the period referred to in the second proviso, such resolution process shall be completed within a period of ninety days from the date of commencement of the Insolvency and Bankruptcy Code (Amendment) Act, 2019.”
5. Representative of financial creditors: A specific provision that financial creditors who have not voted in favor of the resolution plan and operational creditors shall receive at least the amount that would have been received by them if the amount to be distributed under the resolution plan had been distributed in accordance with section 53 of the Code or the amount that would have been received if the liquidation value of the corporate debtor had been distributed in accordance with section 53 of the Code, whichever is higher. This will have a retrospective effect where the resolution plan has not attained finality or has been appealed against.
6. Relief to Homebuyers: A proposed amendment will ensure that a majority vote from creditors such as homebuyers will be counted as a 100% vote from that class of creditors in favor of or against a resolution plan.