Govt discusses action plan for operationalising bankruptcy law

New Delhi: Officials of Finance and Corporate Affairs ministries today discussed an action plan for implementation of the insolvency and bankruptcy law to make debt recovery process more effective. The Insolvency and Bankruptcy Code, 2016 – notified by the government in May – seeks to consolidate and amend laws relating to reorganisation as well as insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner. [caption id=“attachment_2932426” align=“alignleft” width=“380”]  Representational image. AFP[/caption] “Discussed action plan for operationalisation of new bankruptcy law with Secretaries of Corporate Affairs and Financial Services. Action underway,” Economic Affairs Secretary Shaktikanta Das said in a tweet. The Code was approved by Parliament as well as notified by the government in May. Under the new law, employees, creditors and shareholders would have powers to initiate winding up process at the first sign of financial stress such as serious default in repayment of bank loan. Meanwhile, the Corporate Affairs Ministry has invited applications for the post of chairman and members of the Insolvency and Bankruptcy Board, which is to be established under the new law.