According to Kolkata based Eminent Lawyer Vivek Murarka, a partner at Saha & Ray and advocate at transaction law firm, the Insolvency and Bankruptcy Code passed by the Parliament overhauls the existing framework dealing with insolvency of corporate, individuals, partnerships and other entities.
However, he is of the opinion that the current legal and institutional framework was not good enough to provide comfort to lenders with effective and timely recovery of stressed assets which in turn slowed down credit growth. The Government introduced the Insolvency and Bankruptcy Code Bill in November 2015, drafted by a specially constituted ‘Bankruptcy Law Reforms Committee’ (BLRC) under the Ministry of Finance to address complex issues pertaining to bad debts and the recovery mechanisms to restore investor confidence in our banking and financial services sector.
After a public consultation process and recommendations from a joint committee of Parliament, both houses of Parliament have now passed the Insolvency and Bankruptcy Code, 2016 (Code).
What does the Code bring to the table?
The Code offers a comprehensive insolvency legislation covering all companies, partnerships and individuals (other than financial firms). The Government intends to create a separate framework for bankruptcy resolution in failing banks and financial sector entities.
The Code allows creditors to assess the viability of a debtor as a business decision and agree upon a plan for its revival or a speedy liquidation. The Code creates a new institutional framework, consisting of a regulator, insolvency professionals, information utilities and tribunals that will facilitate adjudication of insolvency cases either through satisfactory resolution of dues or liquidation of companies in extreme cases.
What are the highlights of the Code?
This story is from the July 2017 edition of The Observer of Management Education.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the July 2017 edition of The Observer of Management Education.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Workload Management: Why Is It Essential In The 21st Century
The workload management is the procedure of distributing the work among the employees of the organization.
THE CHANGING ROLE OF THE FACULTY MEMBERS OF B-SCHOOLS
Teachers of the day of yore. Mentors of yesterday.
‘‘The goal is to inspire and empower students to be the best they can be''
- Dr. Sivakumar Alagumalai, Professor and Dean (Undergraduate – Global)
Work on your presentation skills
“Everything can sell if you have the ability to sell it” In the field of management you need to have good skills of presentation. PPT presentation is important for Advertisement, Management, and business etc.
Slow and steady job growth
Five reasons why manufacturing careers will flourish with the growth of innovation and globalisation
Setting an alternative route
Want to study an MBA but don’t want to spend thousands of dollars in tuition fees? there are several ways you can get a degree or take MBA courses at no cost.
Right approach!
A millennial employee is one who has a diverse set of opinions, is fascinated by new technologies and is collaborative by nature. the most distinctive feature of these new-age employees is their approach towards work, which is quite different from the generations before them.
For Heighten Performance
“A man who refuses to admit his mistakes can never be successful”
Leadership vs Management
Leadership and Managers are two widely discussed topics.
ELEVATING THE HUMAN EXPERIENCE IN WORK AND BUSINESS IS THE MOOD OF THE MOMENT
The human experience: and that too while conducting business activities.
