Mains Paper 2: Polity | Separation of powers between various organs dispute redressal mechanisms and institutions.
From UPSC perspective, the following things are important:
Prelims level: Not much
Mains level: Insolvency and Bankruptcy Code (IBC) features
- The government has introduced a new form under the insolvency law to enable a person who has to receive a payment from an insolvent company to seek the claim.
- This will enable persons such as homebuyers to make claims for undelivered flats on a company undergoing resolution under the Insolvency and Bankruptcy Code (IBC).
What are the new changes?
- Till now, only financial and operational creditors were permitted to seek claims under the IBC.
- But Insolvency and Bankruptcy Board of India (IBBI) has amended the regulations whereby claims can be made by creditors other than financial and operational creditors.
- Such entities should submit proof of their claims to the resolution professional, as per a notification issued by the IBBI.
- There could be claims from a creditor who is not a financial creditor or an operational creditor and it needs a specific form for submitting its claim.
- The revised regulations come at a time when a large number of flat buyers have been left in the lurch, due to long delays in delivery with developers citing fund crunch