The IBC Amendment Act clarifies key definitions such as ‘security interest’, ‘service provider’, and ‘avoidance transaction’, and expands the scope of fraudulent and wrongful trading. It streamlines admission of insolvency applications by mandating strict timelines and limiting grounds for rejection once default is established. It also strengthens the role of information utilities, making recorded defaults sufficient evidence. The law introduces clearer provisions on withdrawal of applications, restricting it before constitution of the committee of creditors or after invitation of resolution plans.
— It introduces creditor-initiated insolvency resolution process, allowing financial creditors to directly trigger insolvency with prior approvals, thereby expediting proceedings. The committee of creditors is given enhanced supervisory powers during liquidation, including the ability to replace liquidators. New provisions address asset transfers of guarantors, group insolvency frameworks, and preservation of licenses post resolution.