New Delhi, April 14 -- The Centre plans to amend the bankruptcy law for greater clarity after recent court rulings altered claims priorities and added procedures, two people familiar with the matter said.

The changes will spell out who qualifies as a secured creditor, one of the two people cited above said on the condition of anonymity. Secured creditors have a lien, or a legal claim, on the assets of a bankrupt company. Claims from a secured creditor get priority over those of other creditors like material suppliers.

"The bill to amend the Insolvency and Bankruptcy Code (IBC) is likely to be submitted in the Parliament's monsoon session. A Cabinet note is now being finalized. One of the areas of amendment is the classification of centr...