The Rajya Sabha on Wednesday passed the Insolvency and Bankruptcy Code bill. The Lok Sabha had passed it last week.
The Code seeks to consolidate and amend the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner.
The bill provides for setting up of a Insolvency and Bankruptcy Board of India to regulate professionals, agencies and information utilities engaged in resolution of insolvencies of companies.
As per the code, in case of insolvency, interest of the workers should be fully protected and they should be given dues for 24 months.
The code provides for establishment of National Companies Law Tribunal and Debt Recovery Tribunals as adjudicating authorities for resolution of insolvency, liquidation and bankruptcy.
It is expected that the legislation will give a push to the ease of doing business in the country.
The bill was introduced in Lok Sabha on December 21 last year and was referred to the Joint Committee of both the Houses. The Committee submitted its report on April 28.
