Changes in IBC will allow provision for mediation to cut costs\, time

Changes in IBC will allow provision for mediation to cut costs, time

Pre-packaged insolvency, individual bankruptcy mechanism also to be put in place

Veena Mani  |  New Delhi 

The government is planning changes in the Insolvency and Bankruptcy Code (IBC) to insert a provision for mediation to cut costs and the time taken to resolve cases. The review of the IBC will enable the government to put in place a mechanism for pre-packaged resolution, an individual bankruptcy scheme, and use of artificial intelligence.

Though there is a time stipulation of 180 days, and can be extended by another 90 days for resolution to complete after a case has been admitted by the National Company Law Tribunal (NCLT), timelines are not strictly adhered to. For instance, ...

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Read our full coverage on Insolvency and Bankruptcy Code
First Published: Sun, April 21 2019. 21:23 IST