Most experts support the broad direction of the draft Insolvency and Bankruptcy Code, which was recently released by the finance ministry. However, there is a fair degree of apprehension about the implementation. A common question is how this Code will coexist with the existing insolvency laws such as the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) and Sick Industrial Companies Act (SICA).
Other questions involve the jurisdiction of the National Company Law Tribunal (NCLT) and Debt Recovery Tribunal (DRT) under the Code. To achieve desired results, having one consolidated Code on insolvency and bankruptcy is essential. The key bottleneck is going to be the working o…
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