The Government has introduced the Insolvency and Bankruptcy Code (Amendment) Bill, 2021 in the parliament. The amendment seeks to replace the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 promulgated on the 4th day of April, 2021. The ordinance provided for the following—
(a) specifying a minimum threshold of not more than one crore rupees for initiating pre-packaged insolvency resolution process;
(b) disposal of simultaneous applications for initiation of corporate insolvency resolution process and pre-packaged insolvency resolution process, pending against the same corporate debtor;
(c) inserting a new Chapter III-A containing sections 54A to 54P to facilitate pre-packaged insolvency resolution process for corporate persons that are Micro, Small and Medium Enterprises;
(d) penalty for fraudulent or malicious initiation of pre-packaged insolvency resolution process or with intent to defraud persons;
(e) penalty for fraudulent management of corporate debtor during pre-packaged insolvency resolution process;
(f) punishment for offences related to pre-packaged insolvency resolution process; and
(g) certain amendments to the relevant provisions, which are consequential in nature
