The regulations relating to individual insolvency cases relating to partnership firms and proprietorship will be issued in 6-12 months
Insolvency and Bankruptcy Board of India (IBBI) is ready with the rules and regulations with regard to personal guarantors to corporates and will roll them out soon.
The regulations relating to individual insolvency cases relating to partnership firms and proprietorship will be issued in a period of 6-12 months, M S Sahoo, chairman of IBBI, told DNA. A simpler non-adjudicated process is being thought of for very small borrowers, which would be launched in a year's time, he said.
The U K Sinha Committee constituted for group insolvency has recommended a framework that includes initial procedural coordination and then the substantive coordination, he said. The committee has submitted the report to IBBI, which will be sent to the government soon and the decision will be taken in the normal course of the discussion, he said.
FINDING SOLUTION
|
- The regulations relating to individual insolvency cases relating to partnership firms and proprietorship will be issued in 6-12 months
- A simpler non-adjudicated process is being thought of for very small borrowers, which would be launched in a year's time
|
On the issue of home buyers misusing the provisions of IBC law, Sahoo said the law gives the right to people so the government must be thinking to put some restraint on them in a bid to prevent misuse of the law.
On the success of Insolvency and Bankruptcy Code (IBC), Sahoo said financial creditors have got 45% of their claims on an average at a cost of less than 1% under IBC.
About 500 cases have gone into liquidation since the inception of IBC in 2016, he said, adding, "Both absolute value and the rate of growth of NPAs in the banking system have gone down after the introduction of IBC," Sahoo said.
Giving an example of Synergy Dooray which was under Board of Industrial and Financial Reconstruction (BIFR) since 2004 and was the first NPA account to get resolved in 2017 under IBC, he said the resolution of the company fetched only 6% but was six times of the liquidation amount which could be recovered under BIFR.
In about 20 cases, financial creditors have got 100% of their claims, he said. The financial creditors have got 45% of their claims and they got this amount in an average time of 340 days at a cost of less than 1%, he said.
A lot of preparation and sensitivity are required before embarking upon individual insolvency cases, said Sahoo.
Zee Media Newsroom
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "IBC law")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}