Against the prescribed 14 days to get a claim admitted, it takes 650 days. To address this issue the Insolvency and Bankruptcy Board of India (IBBI) has taken the necessary steps to solve the same.
The operational creditors are finding it difficult to establish the delay in the courts. To answer this concern the board has suggested that the submission of GST (Goods and Service Tax) filing along with the e-way bill is more than enough to prove the delay.
Earlier the law requires the appointment of a third valuer when the difference between the values is 25% or less. The board works to waive the third valuer with delay concerns. To mandate the creditors, they have to provide such information to the insolvency professionals.
The advantages of the amendments would be that it gives lesser time for the promoters of the defaulting company and also reduces the risk of siphoning off during the time the application waits for admission.
The changes will be effective after the public comments. A draft copy of the gazette is notified on the website of the IBBI. The draft is to be finalized only after this. The changes will help the public in completing their work faster after getting a thumbs up from the public.
