Provincial Insolvency Act needs to be repealed for the bankruptcy rules

Bankruptcy rules include those for corporate guarantors, proprietorship firms and individual insolvency

The government will have to repeal some sections of the Provincial Insolvency Act, 1920, to frame rules for bankruptcy, including those for corporate guarantors. 

“For the bankruptcy provisions, there is one hurdle. We are working on what all sections of the Provincial Insolvency Act need to be repealed before the bankruptcy provisions are notified," said an official. 

The Provincial Act already has sections pertaining to corporate guarantors. "Once they are repealed, we can notify the rules,” he said. 

In fact, some sections of the Act also need to be done away with for rules for individual bankruptcy, said officials. 

While