The Insolvency And Bankruptcy Code, 2015

The introduction of the Insolvency and Bankruptcy Code, 2015 (the Code) in the Lok Sabha by Finance Minister Arun Jaitley on December 21, 2015 was greeted by unanimous applause and a sigh of relief from all stakeholders. The Code first surfaced over a year ago when the Finance Minister announced that the government hoped to overhaul the present setup of insolvency and bankruptcy laws in the country. Since then, the Bankruptcy Law Reforms Committee chaired by Dr. TK Viswanathan has worked tirelessly to put together the Code in its present form, and submitted its final report on November 4, 2015.

Although the introduction of the Code in the Lok Sabha is only the first step towards a simpler and faster recovery of debts for creditors, the Code has created much excitement amongst many quarters of the industry.