To rescind the notification vide SO. 780(E) dated the 22nd February 2018

## Policy Analysis Report: Rescission of Notification on Insolvency and Bankruptcy Code **1. Executive Summary:** This report analyzes a notification issued by the Ministry of Corporate Affairs on January 28, 2022, which rescinds an earlier notification (S.O. 780E, dated February 22, 2018) related to the Insolvency and Bankruptcy Code, 2016. The core purpose is to revoke the earlier notification, with a caveat preserving actions taken before the rescission. Key findings indicate a shift in policy direction regarding the specific matter covered by the rescinded notification. **2. Introduction:** This report provides an analysis of a notification published by the Ministry of Corporate Affairs, based solely on the provided text, concerning the Insolvency and Bankruptcy Code, 2016. The aim is to inform stakeholders about the notification's content, implications, and potential impact. **3. Policy Overview:** * **Amendment:** This notification represents an amendment (in the form of a rescission) to a prior policy. The original policy being amended is the notification of the Government of India in the Ministry of Corporate Affairs published on 23rd February, 2018, in the Gazette of India, Extraordinary, PartII, Section 3, Subsection ii vide SO. 780E, dated the 22nd February, 2018. * **Core Objective(s):** The core objective of this notification is to *revoke* a previously issued notification regarding the Insolvency and Bankruptcy Code. The rescission is, however, *not* retroactive for actions already taken. **4. Background and Rationale:** Since this notification rescinds a prior one, the likely reason for the amendment is a reassessment or change in approach regarding the policy covered by the original notification (S.O. 780E). The Ministry of Corporate Affairs may have determined that the earlier notification was no longer necessary, effective, or aligned with current policy objectives related to the Insolvency and Bankruptcy Code. The text provides no specific reasons; however, the rescission itself suggests a shift in regulatory stance, requiring those affected by the 2018 notification to re-evaluate its applicability. **5. Key Provisions / Changes:** * **Specific Part Changed:** The entire notification S.O. 780E, dated February 22, 2018, is being rescinded. * **New Rule/Provision:** The new provision is the revocation of the entire previous notification. However, the text explicitly states that this rescission does not affect "things done or omitted to be done before such rescission." * **Effect of Change:** The effect of this change is to render the original notification (S.O. 780E) no longer in effect *going forward*. Any activities, procedures, or requirements mandated solely by the rescinded notification are no longer applicable. Crucially, past actions taken *under* the original notification remain valid. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders are those who were previously governed or affected by the rescinded notification (S.O. 780E) related to the Insolvency and Bankruptcy Code, 2016. This includes: * Corporate entities * Insolvency professionals * Creditors * Any other parties whose rights or obligations were defined by the original notification. **7. Implementation Aspects (Inferred):** * **Responsible Agency:** The Ministry of Corporate Affairs is the responsible agency for implementing this rescission. * **Timelines/Procedures:** The rescission is effective from the date of the notification (January 28, 2022). There are no explicit procedures outlined *in this notification* for implementing the rescission, other than ceasing to apply the rules outlined in the 2018 notification going forward. **8. Expected Outcomes / Impact of Changes:** The intended outcome of this rescission is to remove the regulatory burden or policy outlined in the original notification (S.O. 780E) prospectively. The impact is that stakeholders must now operate without the guidance or requirements previously established by that notification. The explicit preservation of "things done or omitted to be done" suggests an intent to avoid disrupting past transactions or actions taken under the now-rescinded rules, and to prevent any claims based on the rescission. The lack of detail in the rescinding notification necessitates that affected parties determine the new or existing regulatory landscape that will now govern their actions. **9. Conclusion:** The notification issued by the Ministry of Corporate Affairs on January 28, 2022, effectively rescinds a previous notification (S.O. 780E) related to the Insolvency and Bankruptcy Code, 2016. This rescission signals a change in the regulatory approach concerning the specific matter governed by the original notification. Affected parties should carefully assess the implications of this change and determine the applicable rules and regulations now in effect, noting that past actions under the rescinded notification remain valid. Further clarification from the Ministry of Corporate Affairs regarding the specific rationale behind the rescission and the intended future direction would be beneficial for stakeholders.

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