The Lok Sabha has passed the Insolvency and Bankruptcy code 2016 with amendments proposed by the joint committee of Parliament being accepted by the government, a news report suggested. The code will replace the existing bankruptcy laws and is expected to provide a time-bound process for resolving insolvency issues. It will cover individuals, companies, limited liability partnerships and partnership firms. It will also amend laws including the Companies Act to become the overarching legislation to deal with corporate insolvency. It will help in faster debt recovery for creditors. The bill will now need to pass the consent of Rajya Sabha. The government expects the bill to sail through the upper house as well, since members from that house were also a part of the joint committee. According to finance minister Jayant Sinha the legislation is transformational. He said the legislation restores the balance of power between the promoters and creditors. There were 12 laws, some of which were more than 100 years old, to tackle insolvency and now there will be one law, he said. Now India will be able to quickly move up the World Bank rankings, Sinha added.
