Amendments to be added to Bankruptcy Code

More amendments to the Insolvency and Bankruptcy Code (IBC), including a provision to ensure that bankruptcy proceedings of the subsidiaries of the same company are referred to one bench of the National Company Law Tribunal, are in the works, top sources in the government have said.

"The amendment will also ensure that the same insolvency professional handles the insolvency proceedings of all the subsidiary firms of a company," an official in the know of the matter said. He refused to be identified as he is not authorised to speak to the media on the issue.

This amendment is likely to be introduced in the budget session of Parliament.

The official added that the main purpose of this amendment is to ensure that there is no conflict of opinion and there is a holistic resolution for group companies.

Insolvency experts pointed to the case of Amtek Auto Ltd, where bankruptcy proceedings for the parent company and its subsidiary are pending at different benches of the tribunal.