New Delhi: The government on Friday notified the rules by which companies can go through liquidation under the Insolvency and Bankruptcy Code (IBC), 2016. The regulations for the liquidation process are part of the rules being notified by the Insolvency and Bankruptcy Board of India (IBBI) to implement the code and, in the process, improve the ease of doing business in India. The government earlier notified rules empowering the National Company Law Tribunal (NCLT) to be the appropriate adjudicating authority to handle corporate insolvency matters under the code.
Together with the registration of insolvency professionals (IP), IP agencies and notification of regulations under the code, IBBI now has the required infrastructure in place to address bankruptcy matters under the code. Parliament passed the bankruptcy code in May. It aims to improve the ease of doing business in the country by facilitating smoother and time-bound settlement of insolvency and faster turnaround of businesses, along with creating a database of serial defaulters.