In another attempt to improve the ease of doing business, the government on Monday introduced the 'Insolvency and Bankruptcy Code, 2015' in Parliament that provides for resolution of insolvency within a time frame.
The bill is aimed at promoting investments, which will lead to higher economic growth. Also, it provides for setting up of an 'Insolvency and Bankruptcy Board of India' which will regulate professionals, agencies and information utilities engaged in resolution of insolvencies of companies, as well as partnership firms and individuals.
Currently, there is no law that specifically deals with insolvency and bankruptcy. Liquidation of Companies is handled by the High Courts, individual cases are dealt with under the Presidency Towns Insolvency Act, 1909 and Provincial Insolvency Act, 1920.