Regulation 36B(6A): The Amendment Easing the CIRP or Another Redundant Process

Abstract

The Insolvency and Bankruptcy Code which promises a time-bound process to resolve the insolvency and provides codified laws to deal with such situations, promises the parties a timely recovery of the debt and cutting down the hefty burden of legal proceedings and documentation, putting an end to the misery for the suffering corporations’ plight. However, this code being recently affected is bound to scrutiny and drawbacks which at times would not have been processed to occur but time has put it to the test, and for such derangements, multiple amendments are being put in place. One such amendment which brought into effect in September 2022 was the amendment under the Insolvency and Bankruptcy (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 which aimed at introducing regulation 36B(6A), which deals with resolution plans for the purchase of multiple assets instead of the Corporate Debtor as a whole, which might look promising as to bring in much-needed changes. However, the track of changes that this amendment aims to initiate is subject to various tests that it needs to pass to ascertain whether the amendment is a boon for the creditors or is just another procedural bane increasing the difficulties of the stakeholders.

This paper aims to dive deeper into the debate of the recent developments witnessed by the IBC and the changes that regulations 36B(6A) aims to define and its reality as witnessed in the open market, analyzing if this development did bring about any procedural development or is just another promise went in vain.

Keywords: IBC, Regulation 36B, Insolvency, Bankruptcy, IBBI