New Delhi: Union Finance Minister Arun Jaitley addressing the annual general meeting of the Federation of Indian Chambers of Commerce and Industry (FICCI) in New Delhi on Dec. 19, 2015. (Photo: Sunil Majumdar/IANS)
New Delhi, Dec 21 (IANS) Highlights of the bill for an Insolvency and Bankruptcy Code that was introduced in the Lok Sabha, the lower house of parliament, by Finance Minister Arun Jaitley on Monday:
- Consolidates into a single law a host of legislations that deal with the subject;
- Aims to speedily adjudicate such cases for higher recovery of debt and money;
- Allows operational creditors like employees to also call for insolvency resolution;
- Proposes Insolvency Regulator to exercise regulatory oversight over insolvency professionals, insolvency professional agencies and informational utilities;
- Moots two separate Insolvency Adjudicators -- one with jurisdiction over companies and the other over insolvency and bankruptcy resolution of individuals;
- Proposes to regulate insolvency professionals and insolvency professional agencies, under regulator's oversight;
- Proposes fast-tracking resolution of insolvency cases and improve recoveries of amount lent to companies within a timeline of 180 days, extendable by another 90 days;
- Proposes insolvency resolution process for individuals where the creditors and the debtor will engage in negotiations to arrive at an agreeable repayment plan of debts;
- Moots "Fresh Start" process for indigent individuals with income and assets lesser than specified thresholds; and
- Proposes insolvency information utilities which would collate, authenticate and disseminate financial information from listed companies and creditors of companies.
