The Kanara Chamber of Commerce and Industry (KCCI) has asked the Finance Ministry to amend the Insolvency and Bankruptcy Code, 2016. They want MSMEs to have priority in the asset distribution waterfall mechanism and to be treated equally with workmen's dues when the National Company Law Tribunal recommends LLC resolution. Ananthesh V. Prabhu, Chamber President, expressed concern to Union Finance Minister Nirmala Sitharaman that MSMEs lack resources to recover dues from LLCs at NCLT, making them vulnerable during Tribunal resolution. Prabhu emphasized that MSMEs are treated as operational creditors, providing them with little leverage. The consensus was that MSME claims should be treated similarly to workmen's dues. All pending cases before the NCLT or NCALT would be eligible for these benefits. MSMEs caught in the midst of companies facing NCLT proceedings may only survive with preferential treatment. The KCCI attested to the significant challenges faced by SMEs.