Govt to Adopt All IBC Committee Amendments, Bill to be Tabled in Budget Session
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Moneycontrol•21-01-2026, 16:34
Govt to Adopt All IBC Committee Amendments, Bill to be Tabled in Budget Session
- •The government plans to accept all 11 key recommendations from Parliament's select committee on the IBC (Amendment) Bill, which includes 68 amendments to the Principal Act of 2016.
- •The revamped IBC (Amendment) Bill will be tabled in Parliament during the Budget session in February.
- •Recommendations aim to clarify ambiguities, especially regarding the 'clean slate principle,' which ensures new owners are not burdened with prior undisclosed liabilities.
- •A crucial suggestion is to impose a three-month timeline on the National Company Law Appellate Tribunal (NCLAT) for disposing of IBC appeals to enhance efficiency.
- •Other key suggestions include allowing multiple resolution plans, drafting regulations for asset sales, and prioritizing government dues lower than other creditors in liquidation.
Why It Matters: Government will incorporate all select committee recommendations into the IBC Amendment Bill for clarity and efficiency.
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