Insolvency and Bankruptcy Board of India (IBBI) Chairperson MS Sahoo on Monday said some of the major issues confronting the Insolvency and Bankruptcy Code (IBC) will be resolved in the next two-three years and the law would become more “seamless” in implementation.
The government and IBBI have been undertaking a series of consultations, inviting comments and suggestions from all stakeholders with a view to resolving various issues.
Some of the main issues that are likely to be sorted out in the next one or two years are personal insolvency, group insolvency and cross-border insolvency.
“The Central government has invited comments and suggestions on IBC from various stakeholders and some of the core issues are corporate insolvency, group and cross-border insolvency.
In addition, IBBI is also inviting suggestions on various sections and sub-sections of IBC with a view to crowd-sourcing ideas,” Sahoo told newspersons on the sidelines of a special session organised by the Merchants’ Chamber of Commerce and Industry here.
The Ministry of Corporate Affairs (MCA) had recently invited stakeholder comments on the proposed insolvency law reforms. The Centre had, in March, reconstituted the Insolvency Law Committee.
The committee was entrusted with the task of analysing the functioning and implementation of IBC, and make appropriate recommendations to address issues.
IBBI had also invited comments from stakeholders on various changes to be brought in IBC. IBBI expects to process the comments received between April 20 and December 31and consider modifying regulations to the extent considered necessary. “It will be the endeavour of IBBI to notify modified regulations by March 31, 2020, and bring them into force from April, 1, 2020,” it said.
When asked about the delay in the process of resolution in some of the cases, particularly due to litigation and court cases, Sahoo said, “A number of cases are getting resolved, while a handful of them are going to the courts. It is not the first time that a law is taking time to be implemented, it is nothing unusual.”
aniltikotekar4sme.com 