The much-awaited reform of bankruptcy law in India has witnessed a momentous step with the finalization of the report of the Bankruptcy Law Reforms Committee, which was issued yesterday. The report contains two parts: the Rationale and Design and a draft of the Insolvency and Bankruptcy Bill, 2015. Of course, it is impossible to discuss the details of the reforms proposed within the confines of a blog post, but the report is well-researched and comprehensive. It takes into account the economic and legal aspects of insolvency. It is also exhaustive in that it takes into account different forms of entities (companies, partnerships and individuals) and addresses the legal and institutional set up required to provide for an effective bankruptcy process. We hope to touch upon some of the key recommendations in future posts.
For a summary of the recommendations, please see the Government press release and some news reports (here, here and here).