President Ram Nath Kovind has promulgated the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 on 4th of this month. On 31st of March, the Union Cabinet had approved the proposal to make amendments in the Insolvency and Bankruptcy Code, 2016 through the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021. <br />''<br />''<br />''The amendments aim to provide an efficient alternative insolvency resolution framework for corporate persons classified as micro, small and medium enterprises (MSMEs) under the Code. It will ensure quicker, cost-effective and value maximising outcomes for all the stakeholders, in a manner which is least disruptive to the continuity of MSMEs businesses and which preserves jobs. The initiative is based on a trust model and the amendments honour the honest MSME owners by trying to ensure that the resolution happens and the company remains with them.<br />'' <br />''<span style="color: #222222;">It is expected that the incorporation of Pre-Packaged insolvency resolution process for MSMEs in the Code will alleviate the distress faced by MSMEs due to the impact of the pandemic. Other expected impact and benefits of the amendment in Code are lesser burden on Adjudicating Authority, assured continuity of business operations for corporate debtors and less process costs and maximum assets realization for financial creditors.</span><br />