New Delhi, May 30 (KNN) The Insolvency and Bankruptcy Code, 2016 has got the nod from the President and is now ready to become a law. As per the law, Insolvency resolutions of companies and individuals will be completed within 180 days.

Talking to KNN, the Financial Expert VK Suri said that it is a very good law, however, the implementation part is equally important for this.

He explained that earlier it used to take a lot of time to resolve the insolvency issue but now the time would get reduced and the process would be much faster and time bound.

He said that ultimately this law will help the economy.

The legislation has a provision for imposition by appropriate authority a minimum penalty of Rs one lakh and extendable up to Rs one crore on "any person initiating the Insolvency resolution process or liquidation proceedings fraudulently or with malicious intent".

A Bill in this regard was passed by Rajya Sabha on May 11. Lok Sabha had given its nod to it on March 5.

Insolvency is a situation where an individual or a company is unable to repay outstanding debt. (KNN Bureau)