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

Assocham Bulletin - - INDUSTRY -

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.

tsan­klOg Part­ner

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