15/04/2024
The Cabinet has passed a few amendments to the IBC code. The new amendments would give priority to financial lenders as compared to operational lenders. That is really unfair to operational creditors, who are also stuck with their payment. These amendments would certainly be challenged in courts and looks unfair to operational creditors. The maximum time for resolution including legal issues will not be more than 330 days. The priority has been set as first secured financial creditors and workers getting paid fully before payments to unsecured financial creditors and operational creditors. A resolution plan on the said line should be binding on all stakeholders including the Centre, state governments and local authority.