Comments on proposed changes to reduce delays in the Corporate Insolvency Resolution Process

It gives us immense pleasure to announce that CIFL – Centre for Insolvency and Financial Laws, Maharashtra National Law University Mumbai has submitted its comments on the Consultation Paper dealing with the issues related to reducing delays in the corporate insolvency resolution process [released on April 13, 2022] to the Insolvency and Bankruptcy Board of India.

The research was conducted by our member Renuka Nevgi under the able guidance of our Centre Coordinator Dr. Raghav Pandey.

Our team has provided comments on all four issues in the Paper. First, the team welcomes the step of accepting GSTR-1, GSTR-3 and e-way bills as evidence of default for operational debt whilst suggesting the need for a provision that would cater to other operational creditors which are not registered under GST. Second, the team argues in favour of empowering the RP/IRP to stipulate a time-limit for information collection. With respect to the third part, our team submits that the CoC’s proposed power to specify the manner of avoidance proceedings after approval of resolution should be subject to approval by the adjudicating authority. Lastly, our team has argued that setting a threshold of 25% for the appointment of a third valuer would increase objectivity and certainty in the valuation process.

This initiative is in furtherance of our aim to contribute to the substantive discourse in the field of insolvency law by conducting high-quality research to assist policymakers.