Leadership must create a team that will work on the bankruptcy reform to get good recovery rates
Tells lawyers to take up issue of compulsory quoting fees directly with the Bar Council
Govt notifies fast-track resolution code for corporates; decision to largely benefit start-ups
The code aims at time bound resolution for insolvency and exit as part of the ease of doing business
India's debt recovery and restructuring framework is still a work in progress, even six months after the President's assent to the Insolvency and Bankruptcy Code 2016
The Code will help quicker resolution of cases and unlock value of assets
ICAI, ICSI float companies to join the insolvency framework under the new bankruptcy code
The government has been quick in strengthening the newly introduced Insolvency and Bankruptcy Code 2016 by framing draft regulations for insolvency process and liquidation of corporate entities, registration of insolvency professionals and insolvency agencies, rules for applications to the adjudicating authority and draft model by-laws for insolvency agencies.Business Standard takes a look at the brief background and progress of the Code, as well as some key features of the recent proposals which have been put up for public discussion till October 31.When was the Code introduced, and with what objective?The Code came into force on May 28, 2016. The objective was to revamp the scenario of asset reconstruction and streamline the process of corporate liquidation. Still in its nascent stages, the legislation has already been lauded as a path-breaking development from the earlier framework of insolvency, governed primarily though the erstwhile colonial statutes - The Presidency Towns Insolv
As part of implementing the code, the government has already constituted the Insolvency and Bankruptcy Board of India
'The Bill provides for a time-bound process to resolve insolvency'