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MS Sahoo, Chairperson, Insolvency and Bankruptcy Board of India (IBBI), on Monday said some of the major issues surrounding 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 resolve various issues. Some of the main issues that are likely to be sorted out in the next one or two years are that of 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. It may be noted that the Central government had, in March, reconstituted the Insolvency Law Committee. The committee was entrusted with the task of analysing the functioning and implementation of the Code, and make appropriate recommendations to address issues.
In a separate notification, the IBBI had also invited comments from stakeholders on the various changes to be brought in the Code. IBBI expects to process the comments received between April 20, 2019, to December 31, 2019, and consider modifying regulations to the extent considered necessary.
“It will be the endeavour of the 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.”
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