The Insolvency and Bankruptcy Code Ordinance, 2019 – New Amendments and its Implications Webinar
On 29 January, the UK India Business Council (UKIBC) collaborated with our member Ahlawat & Associates in conducting a webinar discussing recent changes to the Indian Insolvency and Bankruptcy legislation, 2019. Leading the discussion was Uday S. Ahlawat, Managing Partner at Ahlawat & Associates. Uday discussed the objectives of the code, the steps involved in the corporate insolvency resolution process (CIRP) and the new amendments added in the month of December 2019.
The three new amendments examined by Uday are as follows: (1) joint application/minimum threshold for homebuyers and/or certain categories of financial creditors; (2) no suspension or termination of a license, permit, registration, quota, concession, clearances or a similar grant or right (“Licenses”) given by the government under the moratorium period; and (3) no liability for offences committed prior to the commencement of the CIRP.
Uday highlighted positives in this process such as some of the largest recoveries in the last two years. This process has helped keep industries alive, and it also saves a substantial amount of money on legal costs. Investor interest in India has improved, and more companies, particularly foreign companies, are confident to do business in India.
According to our Doing Business in India Report, opaque bureaucracy and excessive regulations are two of the largest barriers to doing business in India. The Insolvency and Bankruptcy Code Ordinance combats these barriers by empowering companies to no longer fear investing in India knowing their funds will be secure.