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The Cabinet has given ex-post facto approval to modifications carried out in the Bill that replaced the Insolvency and Bankruptcy Code (Amendment) Bill 2017.
An official statement said, “The amendment will bring clarity and ensure that the prohibition of certain persons in the resolution process of an insolvent corporate person does not include unintended persons and the opportunity given to a person whose account is classified as non-performing asset is more equitable.”
This Bill was passed by Parliament as the Insolvency and Bankruptcy Code (Amendment) Act, 2018.
According to Chander Sawhney, Partner – Valuations at Corporate Professionals, these modifications to the Bill allow for a better valuation of the assets.
He said, “Till now, only liquidation value was required to be computed by the Registered Valuers under the code. As liquidation value resulted in the estimated realisable value based on the piecemeal sale of assets, it often resulted in a base value of the assets of the corporate debtor.”
This was in the case of the corporate debtor being liquidated on the insolvency commencement date.