'Insolvency Code to boost entrepreneurship, ease of doing business'


Bengaluru, Jul 29 (IANS): The Insolvency and Bankruptcy Code (IBC) would boost entrepreneurship and promote ease of doing business, said Karnataka Law and Parliamentary Affairs Minister T.B. Jayachandra on Friday.

Addressing captains of industry at a day-long national conference on IBC organised by the Associated Chambers of Commerce and Industry of India (Assocham), the minister said the code would facilitate insolvency of corporates in a timely manner to maximise value of their assets.

Insolvency and Bankruptcy Board of India (IBBI) Chairperson M.S. Sahoo said the code was meant to prevent insolvency, if possible, and allow stakeholders to take a call by providing a market-driven, time-bound mechanism for resolution of insolvency.

"Wherever the resolution of insolvency is not possible, the code promotes ease of exit as required and provides facilitators for quick resolution. The code also ensures optimum utilisation of resources within a firm or releasing unutilised resources for efficient users for closure of firms," he noted.

Noting that the code was meant to allow maximum utilisation of resources, Sahoo said the new law would also push the growth rate if under-utilised productive resources were released from less-efficient users.

"The code provides economic freedom to exit and a mechanism to address failures. It enables an honest firm to come in, get out and realise potential of every person," reiterated Sahoo.

National Company Law Tribunal Member Ratakonda Murali, National Council on Insolvency & Bankruptcy Code Chairman Sumant Batra and Assocham Secretary General D.S. Rawat also spoke at the conference.

  

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Comment on this article

  • Jossey Saldanha, Mumbai

    Sat, Jul 29 2017

    Donald Trump declared him self bankrupt four times before he was elected President of USA ...

    DisAgree Agree Reply Report Abuse

  • Dr Mohan Prabhu, LL.D, QC, Mangalore (Kankanady)/Ottawa, Canada

    Sat, Jul 29 2017

    The Code is a welcome relief to entrepreneurs and businessmen, but what about individuals who have lost their jobs and houses under debt burden? What recourse do they have? Can they get relief by at least being able to hold on to clothes on the back of their bodies and a minimum "attachment free" assets on which they have to live for continued existence? Or do the century old provincial insolvency laws still govern the situation after 70 years of independence?

    DisAgree Agree Reply Report Abuse


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