• The government has notified the Insolvency and Bankruptcy Code (Amendment) Act, 2019, under which a deadline of 330 days has been set for completion of corporate insolvency resolution process (CIRP), including litigation and other judicial processes.

• The new law aims to provide greater clarity on the permissibility of corporate restructuring schemes, rights and duties of authorized representatives of voters, manner of distribution of amounts among financial and operational creditors.

• It also mandates that votes of all financial creditors, covered under Section 21(6A), shall be cast in accordance with the decision approved by the highest voting share (more than 50 per cent) of the financial creditors on present and voting basis.

• This will have a retrospective effect, where the resolution plan has not attained finality or has been appealed against.

• The new law also makes the resolution plan binding on all stakeholders, including the central government, any state government or local authority, to whom a debt in respect of payment of dues may be owed.