Bengaluru, July 28 (IANS) The Insolvency and Bankruptcy Code (IBC) would boost entrepreneurship and promote ease of doing business, said Karnataka Law and Parliamentary Affairs Minister T.B. Jayachandra on Friday.
Addressing captains of industry at a day-long national conference on IBC organised by the Associated Chambers of Commerce and Industry of India (Assocham), the minister said the code would facilitate insolvency of corporates in a timely manner to maximise value of their assets.
Insolvency and Bankruptcy Board of India (IBBI) Chairperson M.S. Sahoo said the code was meant to prevent insolvency, if possible, and allow stakeholders to take a call by providing a market-driven, time-bound mechanism for resolution of insolvency.
“Wherever the resolution of insolvency is not possible, the code promotes ease of exit as required and provides facilitators for quick resolution. The code also ensures optimum utilisation of resources within a firm or releasing unutilised resources for efficient users for closure of firms,” he noted.
Noting that the code was meant to allow maximum utilisation of resources, Sahoo said the new law would also push the growth rate if under-utilised productive resources were released from less-efficient users.
“The code provides economic freedom to exit and a mechanism to address failures. It enables an honest firm to come in, get out and realise potential of every person,” reiterated Sahoo.
National Company Law Tribunal Member Ratakonda Murali, National Council on Insolvency & Bankruptcy Code Chairman Sumant Batra and Assocham Secretary General D.S. Rawat also spoke at the conference.