Individual borrowers and consumers can take heart from a couple of key provisions in the Insolvency and Bankruptcy Code Bill passed by Parliament – the provision to start their lives afresh after being declared bankrupt. They also will have the option of initiating the insolvency resolution process on their own, under certain circumstances. And now, disputes under this would be resolved by Debt Recovery Tribunal, not district courts.
This is a marked difference from the existing laws governing individual bankruptcy. The current laws governing insolvency of individuals are contained in two separate enactments, that is, Presidency Towns Insolvency Act, 1909 and Provincial Insolvency Act, 1920. The differ…
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