What is the new indian bankruptcy bill all about?

The Parliament passed the Insolvency & Bankruptcy Code on 11th May 2016. It was done to consolidate all the laws related to insolvency in India and to make the process of resolution of insolvency simpler. [Insolvency is the inability of the individuals or corporate to repay their debts. read more

· The new Bill seeks to consolidate all existing laws. · It specifies a timeframe of 180 days after the process is initiated, plus a 90 day extension for resolving insolvency. · The new law will help the companies in step wise winding up of business. read more

The new bankruptcy procedure, which lays down timeline to recover from defaulters unlike discretionary and opaque ways of the past, capping of bank loans to conglomerates, and the increasing realisation to minimise the asset-liability mismatch, is promising a new Indian banking landscape. read more

Once the President signs the legislation, India will have a new bankruptcy law that will ensure time-bound settlement of insolvency, enable faster turnaround of businesses and create a database of serial defaulters. read more