Insolvency and Bankruptcy Code, 2016- Beginning of a new era and new Professional Opportunity for CAs- Jan’17
January 1, 2017
The Insolvency and Bankruptcy Code, 2015 was introduced in Lok Sabha on 21st December, 2015 and
referred to the Joint Parliamentary Committee. The Committee had presented its recommendations
and modified the Bill based on its suggestions. Later the Insolvency and Bankruptcy Code, 2016
was passed by both the Houses of Parliament in May 2016 and the same has been notified. This is
one of the major economic reforms Bill moved by the Government. The objective of the Insolvency
and Bankruptcy Code, 2016 is to consolidate and amend the laws relating to reorganisation and
insolvency resolution of corporate persons, partnership firms and individuals in a time bound
manner so as to make it easy for the investors to exit within a fixed time frame in an effort to
improve the ease of doing business in India. Since there is no single law in India that deals with
insolvency and bankruptcy, one of the most important reforms envisaged in this bill is to make
substantive changes in eleven enactments and repealing some to avoid conflicting rules, i.e., now
only 1 Act to be followed, instead of 11 different Acts. It also opens up a new window of professional
opportunity for Chartered Accountants as Insolvency Professionals. Read on to know more...
