FinMin, MCA brief Par panel on Insolvency and Bankruptcy Code

Officials from the ministries of finance and corporate affairs today briefed a Parliamentary panel on the Insolvency and Bankruptcy Code, 2015, which seeks to provide an easy exit option for insolvent and sick firms.
The briefing was given to the 30-member Joint Committee on the Insolvency and Bankruptcy Code, 2015.
The panel is also learnt to have heard the views of T K Vishwanathan, former Secretary General, Lok Sabha and the Chairman of The Bankruptcy Law Reform Committee.
Yesterday also, there was a briefing by the representatives of the Department of Economic Affairs, Ministry of Finance in connection with examination of the Bill.

The joint committee has to submit its report on the bill by the last day of the first week of the Budget session, Finance Minister Arun Jaitley had said while moving a motion in Lok Sabha last month.
Seeking to improve ease of doing business, the government has moved the bill in Parliament aimed at promoting investments, leading to higher economic growth.

As per the statement of objects and reasons of the bill, a new legislation was needed to deal with insolvency and bankruptcy as the existing framework is "inadequate, ineffective and results in undue delays in resolution".
As per the proposed legislation, the corporate insolvency would have to be resolved within a period 180 days, extendable by a further 90 days. It also provides for fast-track resolution of corporate insolvency within 90 days.

The committee has 10 members from Rajya Sabha and 20 from Lok Sabha.
Rajya Sabha members of the Committee are Ajay Sancheti, Bhupender Yadav (both BJP), Naresh Gujral (SAD), Anand Sharma, Bhalchandra Mungekar (both Congress), Praful Patel (NCP), Ravi Prakash Verma (SP), K C Tyagi (JD-U), Sukhendu Sekhar Roy (Trinamool Congress) and Satish Chandra Misra (BSP).
The members from Lok Sabha include K C Venugopal (Congress), Sushmita Dev (Congress), Gopal Shetty, Subhash Chandra Baheria, Nishikant Dubey, Shivkumar Udasi, Anil Shirole, Abhishek Singh, Gajendra Singh Shekhawat, Sanjay Jaiswal, Jagdambika Pal and P P Chaudhary (all BJP).