The Insolvency and Bankruptcy Code, 2016 (“IBC”) underwent significant amendment on 04.04.2021 when the Hon’ble President passed the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 (“the Ordinance”).
Introduced on the backdrop of COVID-19 pandemic, the highlight of the Ordinance was the introduction of Pre-Packaged Insolvency Resolution Process (“PPIRP”) for Corporate Debtors (“CD”) that qualify as Micro, Small, and Medium Enterprises (“MSMEs”) as defined under Section 7(1) of the Micro, Small and Medium Enterprises Act, 2006.
