Since today (15 December
2016), the provisions of section 33 to section 54 (regarding liquidation
processes) of the “Insolvency and Bankruptcy Code, 2016” shall come into force.
(MCA Notification No. S.O
3687(E), Dated 9th December 2016.)
Showing posts with label Insolvency and Bankruptcy Code 2016. Show all posts
Showing posts with label Insolvency and Bankruptcy Code 2016. Show all posts
Thursday 15 December 2016
Thursday 7 July 2016
What is Insolvency and Bankruptcy Code 2016?
Insolvency
and Bankruptcy Code 2016
Insolvency and Bankruptcy
code 2016 passed by Rajya Sabha on 11 May 2016. Earlier it had been passed in
Lok Sabha on 5th May 2016.
What
is Insolvency and Bankruptcy Code 2016?
It is the law relating
to reorganization and insolvency resolution in a time bound manner.
It will be specifically
useful for debtors and creditors, as the code seek to achieve certainty for
recovery and enforcement proceedings.
India legal and
institutional machinery regarding dealing with debt default has not be in line
with global Standards.
The existing law of
contract Act or Recovery of Debts Due to Banks and Financial Institutions Act,
1993 or the Securitisation and Reconstruction of Financial Assets or Enforcement
of Security Interest Act, 2002 or Sick Industrial Companies (Special
Provisions) Act, 1985 or the winding up provisions of the Companies Act, 1956 ,had
not given desirous results to the creditors when he had used the same for
recovery proceedings. In this context Indian market has remains a risky option
for investment for national and international investors.
The Insolvency and
Bankruptcy Code 2016 has consolidate various existing laws and will prove to be
the important step in changing the legislative infrastructure of India by
removing the negativity attached to time and ease of recovery.
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