Insolvency and Bankruptcy Code — Policy Reforms

Entry	Year	Description	Impact
Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018	2018	Introduced Section 29A, disqualifying certain persons from submitting resolution plans. Recognized homebuyers as financial creditors. Clarified voting thresholds for CoC decisions.	Significantly improved corporate governance by preventing defaulting promoters from reacquiring assets. Enhanced protection for homebuyers. Streamlined CoC decision-making.
Insolvency and Bankruptcy Code (Amendment) Act, 2019	2019	Mandated a 330-day timeline for completion of CIRP, including litigation. Clarified the priority of financial creditors in liquidation. Ensured resolution plans are binding on all stakeholders, including government authorities.	Reinforced the time-bound nature of CIRP, reducing delays. Provided legal certainty regarding the binding nature of resolution plans, reducing post-resolution disputes. Clarified distribution hierarchy.
Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021	2021	Introduced the Pre-packaged Insolvency Resolution Process (PPIRP) for Micro, Small and Medium Enterprises (MSMEs).	Provided a faster, less disruptive, and cost-effective resolution mechanism for MSMEs, allowing for informal negotiations with creditors before formal NCLT approval. Aimed at preserving MSME businesses and employment.