The Insolvency and Bankruptcy Code, 2016 has been amended to address procedural gaps and improve efficiency in insolvency resolution and liquidation processes. The amendment introduces new definitions such as “registered valuer”, “service provider”, “avoidance transaction”, and “fraudulent or wrongful trading”, and clarifies the concept of security interest. It strengthens timelines by mandating disposal of applications within specified periods with reasons for delay.

The role of the Committee of Creditors has been expanded to supervise liquidation and approve key decisions including withdrawal, asset transfers, and replacement of liquidators. Provisions relating to resolution plans have been modified to ensure fair payment to dissenting financial creditors and continuity of licenses and approvals post-resolution.

A significant change includes the introduction of creditor-initiated insolvency resolution process (Chapter IV-A), allowing specified financial creditors to initiate insolvency with majority approval. Additional provisions enable restoration of CIRP before liquidation, regulate guarantor asset transfers, and allow creditors to directly approach adjudicating authority in avoidance transactions.