Insolvency and Bankruptcy Code receives President’s Assent [Read the Code]
The Insolvency and Bankruptcy Code received the President’s assent on May 28 and was notified in the Gazette of India soon after. As listed down by PIB, the salient features of the law are as follows:
- Clear, coherent and speedy process for early identification of financial distress and resolution of companies and limited liability entities if the underlying business is found to be viable
- Two distinct processes for resolution of individuals, namely- “Fresh Start” and “Insolvency Resolution”
- Debt Recovery Tribunal and National Company Law Tribunal to act as Adjudicating Authority and deal with the cases related to insolvency, liquidation and bankruptcy process in respect of individuals and unlimited partnership firms and in respect of companies and limited liabilities entities respectively
- Establishment of an Insolvency and Bankruptcy Board of India to exercise regulatory oversight over insolvency professionals, insolvency professional agencies and information utilities
- Insolvency professionals would handle the commercial aspects of insolvency resolution process. Insolvency professional agencies will develop professional standards, code of ethics and be first level regulator for insolvency professionals members leading to development of a competitive industry for such professionals
- Information utilities would collect, collate, authenticate and disseminate financial information to be used in insolvency, liquidation and bankruptcy proceedings
- Enabling provisions to deal with cross border insolvency.
You may read more about the Code here.
Bankruptcy Code | Insolvency Resolution | President of India | The Insolvency and Bankruptcy Code 2016