Insolvency and Bankruptcy Code Amendment Ordinance, 2021 

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• The President of India promulgated the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021, which aims to provide an efficient alternative insolvency resolution process for the corporate persons classified as MSMEs.

• The ordinance allows the corporate debtor to submit a “base resolution plan” to the resolution professional. 

• Chapter III-A has been introduced to the Insolvency and Bankruptcy Code, 2016 under the amendment. 

• It explains the initiation of the resolution, duties of resolution professionals and eligibility to take the benefits of pre-packaged insolvency resolution processes, etc.