The government is actively considering introducing a short, time-bound, online financial bidding process in corporate insolvency cases to improve transparency and reduce litigation.
Currently, creditors of a company undergoing insolvency proceedings are free to negotiate with potential bidders individually, which has led to offers being revised, bids coming in after the deadline and associated litigation, prolonging the process.
The Centre aims to quicken resolution proceedings by setting a time limit for financial bids.Once a resolution applicant submits a plan and the plan meets basic eligibility criteria, you can shortlist eligible ones and then give them a window for, say 48 hours, to do financial bidding on a platform.