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Comparison between Old Act {Insolvency and Bankruptcy Code, 2016} & New/Amended Act {Insolvency and Bankruptcy Code (Amendment) Act, 2021}

Part 1 (Changes in Sections/Substituted Sections)

Amendment Insolvency and Bankruptcy Code, 2016 Insolvency and Bankruptcy Code (Amendment) Act, 2021
Short title and commencement This Act may be called the “Insolvency and Bankruptcy Code, 2016 This Act may be called the “Insolvency and Bankruptcy Code (Amendment) Act, 2021”
Amendment of Section 5 in Clause (5) in Sub-Clause (b)

{Definitions}

 

 

A member or partner of the corporate debtor who is authorised to make an application for the corporate insolvency resolution process “___________” under the constitutional document of the corporate debtor A member or partner of the corporate debtor who is authorised to make an application for the corporate insolvency resolution process “or the pre-packaged insolvency resolution process, as the case may be” under the constitutional document of the corporate debtor
Amendment of Section 5 in Clause (11)

{Definitions}

“Initiation date” means the date on which a financial creditor, corporate applicant or operational creditor, as the case may be, makes an application to the Adjudicating Authority for initiating corporate insolvency resolution process “__________” “Initiation date” means the date on which a financial creditor, corporate applicant or operational creditor, as the case may be, makes an application to the Adjudicating Authority for initiating corporate insolvency resolution process “or pre-packaged insolvency resolution process, as the case may be
Amendment of Section 5 in Clause (15)

{Definitions}

“interim finance” means any financial debt raised by the resolution professional during the insolvency resolution process period “_________________” “interim finance” means any financial debt raised by the resolution professional during the insolvency resolution process period “or by the corporate debtor during the pre-packaged insolvency resolution process period, as the case may be and such other debt as may be notified
Amendment of Section 5 in Clause (19)

{Definitions}

“officer” for the purposes of “____________” Chapter VII of this Part, means an officer who is in default, as defined in clause (60) of section 2 of the Companies Act, 2013 (18 of 2013), or a designated partner as defined in clause (j) of section 2 of the Limited Liability Partnership Act, 2008 (6 of 2009), as the case may be “officer” for the purposes of “Chapter VI and” Chapter VII of this Part, means an officer who is in default, as defined in clause (60) of section 2 of the Companies Act, 2013 (18 of 2013), or a designated partner as defined in clause (j) of section 2 of the Limited Liability Partnership Act, 2008 (6 of 2009), as the case may be
Amendment of Section 5 in Clause (25)

{Definitions}

“Resolution applicant” means a person, who individually or jointly with any other person, submits a resolution plan to the resolution professional pursuant to the invitation made under clause (h) of sub-section (2) of section 25 “________________” “Resolution applicant” means a person, who individually or jointly with any other person, submits a resolution plan to the resolution professional pursuant to the invitation made under clause (h) of sub-section (2) of section 25 “or pursuant to Section 54K, as the case may be
Amendment of Section 5 in Clause (27)

{Definitions}

“Resolution professional”, for the purposes of this Part, means an insolvency professional appointed to conduct the corporate insolvency resolution process “______________” and includes an interim-resolution professional “Resolution professional”, for the purposes of this Part, means an insolvency professional appointed to conduct the corporate insolvency resolution process “or the pre-packaged insolvency resolution process, as the case may be” and includes an interim-resolution professional
Amendment of Section 11 in Clause (a)

{Persons not entitled to make application}

(a) A corporate debtor undergoing a corporate insolvency resolution process “________________” (a) A corporate debtor undergoing a corporate insolvency resolution process or a pre-packaged insolvency resolution process

New Clause Inserted (aa)

(aa) a financial creditor or an operational creditor of a corporate debtor undergoing a pre-packaged insolvency resolution process; or”

Amendment of Section 33 in Sub-Section (3)

{Initiation of liquidation}

Where the resolution plan approved by the Adjudicating Authority “______________” is contravened by the concerned corporate debtor, any person other than the corporate debtor, whose interests are prejudicially affected by such contravention, may make an application to the Adjudicating Authority for a liquidation order as referred to in sub-clauses (i), (ii), (iii) of clause (b) sub-section (1) Where the resolution plan approved by the Adjudicating Authority “under section 31 or under sub-section (1) of section 54L” is contravened by the concerned corporate debtor, any person other than the corporate debtor, whose interests are prejudicially affected by such contravention, may make an application to the Adjudicating Authority for a liquidation order as referred to in sub-clauses (i), (ii), (iii) of clause (b) sub-section (1)
Amendment of Section 34 in Sub-Section (1)

{Appointment of liquidator & fee to be paid}

Where the Adjudicating Authority passes an order for liquidation of the corporate debtor under section 33, the resolution professional appointed for the corporate insolvency resolution process under “__________________” shall act as the liquidator for the purposes of liquidation unless replaced by the Adjudicating Authority under subsection (4) Where the Adjudicating Authority passes an order for liquidation of the corporate debtor under section 33, the resolution professional appointed for the corporate insolvency resolution process under “Chapter II or for the pre-packaged insolvency resolution process under Chapter III-A shall, subject to submission of a written consent by the resolution professional to the Adjudicatory Authority in specified form” shall act as the liquidator for the purposes of liquidation unless replaced by the Adjudicating Authority under subsection (4)
Amendment of Section 61 in Sub-Section (4)

{Appeals & Appellate Authority}

“(4) An appeal against a liquidation order passed under section 33 may be filed on grounds of material irregularity or fraud committed in relation to such a liquidation order” (4) An appeal against a liquidation order passed under section 33, or sub-section (4) of section 54L, or sub-section (4) of section 54N, may be filed on grounds of material irregularity or fraud committed in relation to such a liquidation order

New Sub-Section Inserted (5)

(5) An appeal against an order for initiation of corporate insolvency resolution process passed under sub-section (2) of section 54-O may be filed on grounds of material irregularity or fraud committed in relation to such an order”

Amendment of Section 77 (Explanation)

{Punishment for providing false information in application made by corporate debtor}

“Explanation:- For the purpose of this Section and Section 75 & 76, an application shall be deemed to be false in material particulars in case the facts mentioned or omitted in the application, if true, or not omitted from the application as the case may be, would have been sufficient to determine the existence of a default under this code” “Omitted”

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