IBC 2.0: Timelines & Recoveries to Double, Says Baijayant Panda

• Baijayant Panda, chairperson of Parliament’s Select Committee on IBC, states that the revamped IBC 2.0 will significantly reduce resolution time and potentially double debt recoveries for banks.
• The new Act strictly defines timelines for each stage of the resolution process, aiming to improve efficiency and certainty.
• The Select Committee suggested a three-month timeline for NCLAT to dispose of IBC appeals, addressing current delays.
• New provisions in the IBC Bill impose specific timelines: 14 days for NCLT to admit a case, 30 days for withdrawal applications, and 180 days for liquidation post-acceptance.
• The Committee emphasized the 'clean-slate principle' to prevent new owners from being burdened with pre-takeover liabilities, even from government agencies.

Why It Matters: IBC 2.0 aims to streamline insolvency, double bank recoveries, and enforce strict timelines for resolution.