New Delhi, Oct 27 (KNN) Eyeing at strengthening the Insolvency and Bankruptcy Code (IBC) framkework, the Insolvency and Bankruptcy Board of India (IBBI) organised a stakeholder consultation on Individual Insolvency Rights and obligations of Micro, Small and Medium Enterprises (MSMEs) owners, at Ludhiana, recently.

The programme was organised jointly with FISME, the Society of Insolvency Practitioners of India (SIPI) and MSME -Development Institute, Ludhiana.

Suman Saxena, Member of IBBI chaired the session and explained the proposed rules to deal with insolvency of individuals and partnership firms.

The Insolvency and bankruptcy law  is a powerful legislation, and the proceedings against the corporate NPAs by the Banks are already making headlines.

The Code prescribes strict times lines and once a case is admitted the company/ firm is either wound-up or restructured within the timeframe.

While the Code will surely provide a time bound exit of the MSMEs from a failed venture, there are also some tough underlines.

For instance the proposed rules for MSMEs (individuals and partnership firms) stipulate attachment of personal properties, debarment from business activities for certain period etc.

This meeting comes as a leg of the larger nationwide consultation with stake holders being conducted by IBBI to seek feedback on the draft Rules so that the final statute has adequate checks and balances.

The programme at Ludhiana was also addressed by Ranjeeta Dubey, Secretary,  IBBI and legal experts from Vidhi Center For Legal Policy , New Delhi,  presented papers on the law.

Major Singh, Director, MSME-DI, Ludhiana welcomed the delegates and participants and mentioned about the difficult financial environment the MSMEs are passing through.

Also a lively interactive session where the queries  of the participants were resolved by the experts from IBBI and Vidhi was facilitated during the event. (KNN/DB)