The Insolvency and Bankruptcy Board of India (IBBI) introduced the Insolvency Resolution Process for Corporate
Persons (Amendment) Regulations, 2019 which came into effect from 24.01.2019. The amendments have been introduced in the light of recent failure/non-seriousness of the successful Resolution Applicant(s) to meet the commitments proposed by them in the Resolution Plan approved by the Committee of Creditor of Corporate Debtor as well as the Hon’ble Adjudicating Authority (National Company Law Tribunal) under Section 31 of the Insolvency and Bankruptcy Code, 2016 (Code).
Due to failure of the commitments the time, energy and efforts put by all those who were involved in Corporate Insolvency Resolution Process of a Corporate Debtor go into vein. Further, it leads to a peculiar situation as liquidation also cannot be commenced as this type of situation is not even contemplated under Section 33(3) of the Code.
This article summarizes the changes proposed vide these amendments.