New Delhi, Aug 9 (KNN) Initiating the first step on making the Insolvency and Bankruptcy Code 2016 effective, the Government  has recently notified some sections of the Code, related to appointment of Chairperson and other Members of the Insolvency and Bankruptcy Board of India.

Simultaneously the Government has also advertised the posts of Chairperson and Members, inviting application from eligible persons.

The Code is undoubtably  a water shade Act in the area of business facilitation and will  provide great respite to the proprietory and partnership firms to which the vast majority of Indian MSMEs belong.

The situation so far was vividly described once by Dr. Bibek Debroy, renowned economist and present member of NITI Aayog as.. “ Post 1991, attention has been paid  in India to legal constraint inhibiting entry….. so far exit is concerned, no attention has been paid whatsoever and this argument is stronger if one focuses small scale enterprises….”

The preamble of the Act mention it as an Act to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximisation of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders.

So in the near future we may no more see dilapidated buildings of factories closed decade ago, workers of closed factories running helter and skelter realising their dues and entrepreneurs making life long rounds of various courts facing innumerable cases, just for the reason that they enterprise could not run profitably.

The golden line of the Code is ‘Time bound’ which is expected to provide a great relief to all starting from the ‘Insolvent’ to the creditors.

The  Code also Repeals / Amends some of the draconian bankruptcy laws of India, which could a person even to jail for  just failure of his enterprise.

So  no prize for guessing why  the number of entrepreneurs is miserably low in India.

Commenting on the development Mr. Anil Bhardwaj, Secretary General, FISME opined that the Bankruptcy Code may be the real ‘Ease of Doing Business’ in India for which  FISME is advocating for decade. ‘The prompt notification of the constitution of the Bankruptcy Board also indicates seriousness of the Government to put the code in effect at the earliest’, he  said. (KNN/ DB)