Facilitating Level Playing Field
The Insolvency and Bankruptcy Code (IBC) 2016 will benefit the economy as it offers a time-bound resolution process to resolve bankcruptcy issues. To discuss its structure and objectives in detail, ASSOCHAM-organised a National Conference on 'IBC: Protect
The chiefguest, Mr. T. B. Jayachandra, Karna taka Law and Parliamentary Affairs Minister, felt that !BC will help in promoting ease of doing business and boost entrepreneurship.
"The legislation has been enacted to promote the ease
of doing business in respect of corporate sector as it applies to insolvency of individuals, partnershi ps, firms and corporations of the companies," said Mr. Jayachandra while inaugurating the event.
!BC is aimed at promoting entrepreneurship as it provides for reorganisation, insolvency of corporates in a time-bound manner for maximisation of the value of their assets.
Dr. M. S. Sahoo, Chairman, Insolvency and Bankruptcy Board of India (IBBI) expressed that IBCendeavours to prevent
insolvency, if possible and allows the stakeholders to themselves take the call by providing a market-driven, time-bound mechanism for resolution of insolvency wherever possible.
He added that wherever the resolution of insolvency is not possible, the Code promotes ease of exit wherever required and provides facilitators for quick and effective resolution.
"In the process, it ensures optimum utilisation of resources all the time either by ensuring efficien t u tilisa tion wi thin the firm through resolution of insolvency or releasing unutilised or under-utilised resources for efficient users for closure of firms", said Dr. Sahoo.
He said that the Code is aimed at promoting continuous utilisation of all resources at 100 per cent level.
"This is possible if we can somehow put all the productive resources that are currently unutilised or under-utilised for some reason or the other to more efficient uses and if they can be released seamlessly from less efficient to more efficient users" , said the IBBI chief.
"The growth rate may well go up by few percentage points with other things remaining unchanged", he further said.
Dr. Sahoo also said that the Code provides the ultimate economic freedom to exit and also a mechanism to address honest, relative failures. "It enables an honest firm, inclusive institution, undeterred by fear of failure to come in, get out, and thereby realising full potential of every person."
He added that in the process, the Code improves ease of doing business, promotes en trepreneurshi p. develops corporate debt market, increases options for corporate debt financing and balances the interest of various stakeholders.
Dr. Sahoo further said that for the potential to improve and promote inclusive growth and to address the key legal and economic problems like insufficient resources for such huge needs and adequate freedom to people subject to regulations of the market failure, the IBC constitutes one of the biggest economic reforms in recent years.
Mr. T B. Jayachandra, Karnataka Law and Parliamentary Affairs Minister being greeted by Mr. R. Shivakumar, ASSOCHAM Karnataka Chaptili Chairman. Also seend Dr. M.S. Sahoo, Chairman, IBBI. Vol. No.
Mr. T B. Jayachandra, Karnataka Law and Parliamentary Affairs Minister addressing the audience.