Doing business in India just got easier with a new code on insolvency and bankruptcy passed in the Lok Sabha on Thursday, reported the Mint. Expected to be passed smoothly in the Rajya Sabha too, the bill will help in faster turnaround of businesses as well as exiting an ailing entity, and even recovering of debt by creditors.
Called the Insolvency and Bankruptcy Code Bill 2016, it will replace the outdated bankruptcy laws and deal a in time-bound manner with all insolvencies. The Companies Act will be amended to be the sole legislation to deal with corporate insolvency. However, individuals, partnership firms and limited liability partnership (LLPs) will all be covered under the new law.
The Mint report noted that enactment of the law…
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