The ink on the insolvency law passed by the UPA-2 in 2013 was yet to dry up when the NDA, soon after assuming power in 2014, announced the setting up of the Bankruptcy Reforms Commission to propose a new law. Based on the Commissions recommendations, the government introduced the Insolvency and Bankruptcy Code in Parliament to enact a comprehensive law to deal with insolvency of corporate entities and natural persons.
While the government deserves a pat on the back for the speed with which the legislation has been brought, many significant changes suggested raise serious concerns. The Bill proposes to establish an Insolvency and Bankruptcy Board of India, comprising of senior government functionaries and such others appointed by…
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