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Showing posts from May, 2016

NOTE ON INSOLVENCY & BANKRUPTCY CODE, 2016

OBJECT: The objective of the Insolvency & Bankruptcy Code, 2015 is to consolidate and amend the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner. As we are aware that there is no single law in India that deals with Insolvency and Bankruptcy. As per present legal framework, provisions relating to Insolvency and Bankruptcy for companies can be found in the Sick Industrial Companies (Special Provisions) Act, 1985, the Recovery of Debt to Banks and Financial Institutions Act, 1993, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and the Companies Act, 2013. Liquidation process of the Companies is being handled by the High Court under Companies Act and other Courts are dealing Insolvency & bankruptcy of Individual. As the existing framework is inadequate, ineffective and results in undue delays in resolution, therefore the Insolvenc...