Last Modified: Fri, Jan 15 2016. 06 57 PM IST
In the march of motivated policy reforms that are afoot in India, a new insolvency code was tabled in Parliament last month. A hat tip is due to the Bankruptcy Law Reform Committee (BLRC) for the dramatic qualitative upshift from its interim report.
The broad direction of the proposed corporate insolvency law is excellent, and it addresses the three most important failings of the past. First, it recognises the right of creditors to determine the future of an insolvent borrower.
Second, it sets a time frame of 180 days for insolvency resolution, with a 90-day extension if judged necessary, to be followed by liquidation.
Finally, it almost succeeds in introducing one comp…
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