AMN /
The Lok Sabha today passed the Insolvency and Bankruptcy Code, 2016. The Code seeks to consolidate and amend the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner.
The bill provides for setting up of a Insolvency and Bankruptcy Board of India to regulate professionals, agencies and information utilities engaged in resolution of insolvencies of companies.
As per the code, in case of insolvency, interest of the workers should be fully protected and they should be given dues for 24 months.
The code provides for establishment of National Companies Law Tribunal and Debt Recovery Tribunals as adjudicating authorities for resolution of insolvency, liquidation and bankruptcy.
Replying to the debate , Minister of State for Finance, Jayant Sinha said, the the code will give a push to the ease of doing business in the country.
He said, the interest the workers has been taken care of while formulating the code. He said, payment of workers dues will be given top priority in case of liquidation of a company.
The bill was introduced in Lok Sabha on 21st of December last year and was referred to the Joint Committee of both the Houses.
The Committee submitted its report on 28th of last month.Initiating the discussion, Sushmita Dev of Congress said that the Code will help improve the country’s ranking in respect of ease of doing business.
P P Choudhary of BJP said, the legislation will boost the ease of doing business. He said, in the code, there is a provision of setting up of Insolvency and Bankruptcy Fund.