The Ministry of Corporate Affairs vide circular dated 23rd December 2021 Invitation of comments from public on proposed changes to the Corporate Insolvency Resolution and Liquidation Framework under Insolvency and Bankruptcy Code, 2016. It is proposed that the Code may be amended to provide that the resolution plan should mandatorily specify the manner of undertaking proceedings for avoidance of transactions and wrongful trading if such proceedings are to be continued after approval of the plan.
Further, the resolution plan may also be required to provide the manner of distribution of expected recoveries from
proceedings related to avoidance of transactions and wrongful trading.
