The Amendment Act is definitely a step in the direction of reform and is significantly different from the SICA regime, although it does little to expedite and simplify insolvency or liquidation procedures or to resolve all the problems faced under SICA. The most reformatory effect of the Amendment Act is that the moratorium provision under SICA, which imposed an unlimited stay that blocked creditors from pursuing debts owed by sick companies, has been taken away.
However, if the entire Amendment Act is notified, the Amendment Act could have a significant impact on India’s insolvency regime. For starters, the Companies Act will undergo significant changes under which the winding-up proceedings and liquidation process of a company will no longer be bifurcated between the BIFR and the High Courts but instead will be under one umbrella of the NCLT. In addition, once the Amendment Act comes into force, the Repealing Act will become effective, giving Indian insolvency laws a major overhaul instead of a mere face lift.