The Insolvency and Bankruptcy Code (IBC), 2016, will soon have provisions dealing with individual insolvency and bankruptcy, said MS Sahoo, chairman of Insolvency and Bankruptcy Board of India (IBBI). Sahoo on Friday said the first priority would be the regulations specifically relating to guarantors to corporate debtors or personal guarantors.
Responding to a question on a timeline for the insolvency and bankruptcy resolution processes of individuals and firms, Sahoo said: “That will take a little time. Preparedness is on. Won’t be able to give a deadline but work is on.” He was speaking at an event to launch the Graduate Insolvency Programme (GIP) being offered by the Indian Institute of Corporate Affairs for individuals who desired a career within the insolvency profession in India and in foreign jurisdictions.
Sahoo indicated that insolvency resolution process of individuals and firms, specifically in the personal guarantors category, would be a priority given that existing regulations on Insolvency Resolution Process for Corporate Persons that came into effect in December 2016. The other two categories include ‘individuals having business (partnership, proprietorship or any other)’ and other individuals.
IBBI, established in October 2016 under the IBC, has regulatory oversight over the insolvency professionals/agencies/entities and information utilities and is also responsible for writing and enforcing rules for processes related to corporate insolvency resolution, corporate liquidation, individual insolvency resolution and individual bankruptcy under IBC.
Back in June 2017, the IBBI had constituted a working group to recommend the strategy and approach for implementation of IBC provisions to deal with insolvency and bankruptcy with respect to guarantors to corporate debtors, and individuals having business, and for drafting related regulations.
Source: Financial Express, February 16,2019