Anchor: Vishal Dahiya
The Insolvency and Bankruptcy Code (Amendment) Bill, 2021 has been introduced in Lok Sabha. These bills seek to replace the orders issued in April 2021 which offered an alternate bankruptcy resolution scheme for the MSME sector.
The MSME sector is a crucial sector of the economy given that it is the second-largest employer after agriculture. The Pre-packaged Insolvency Resolution Process (PIRP) has opened a lot of scope for the resolution of various disputes related to MSMEs. This will help in the revival of the MSME sector as well as in freeing up of resources that can then be put to better use.