REPORT OF THE JOINT COMMITTEE ON
THE INSOLVENCY AND BANKRUPTCY CODE, 2015
SIXTEENTH LOK SABHA
Presented to Lok Sabha on 28 April, 2016
Laid in Rajya Sabha on 28 April, 2016
REPORT OF THE JOINT COMMITTEE ON THE INSOLVENCY AND BANKRUPTCY CODE, 2015
I, the Chairperson of the Joint Committee to which the Bill* titled `Insolvency and Bankruptcy Code, 2015‘ was referred, having been authorised to submt the Report on their behalf, present this Report with the Bill as amended by the Committee annexed thereto.
2. The Insolvency and Bankruptcy Code, 2015 was introduced in Lok Sabha on 21 December, 2015. The motion for reference of the Bill to a Joint Committee of both the Houses of Parliament was moved in Lok Sabha on 23 December, 2015 by Shri Arun Jaitley, Minister of Finance (Appendix-I). The Rajya Sabha concurred in the said motion on the same date (Appendix-II). The time given to the Committee for making the report as per the aforesaid motion was the last day of the first week of the Budget Session, 2016. One extension for making the report by the last day of the first week of the second part of the Budget Session, 2016 was granted by the House as per the motion moved and adopted on 26 February, 2016(Appendix-III). With the prorogation of Lok Sabha on 29 March, 2016, the second part of the Budget Session, 2016 stood cancelled. Subsequently, summons were issued for the next session i.e. Eighth Session from 25 April, 2016 to 13 May, 2016. The date of commencement of Eighth Session being same as commencement of second part of Budget Session, 2016, the earlier extension given by the House was treated as extension upto the last day of the first week of the Eight Session as per the motion moved and adopted by the Lok Sabha on 25 April, 2016.
3. The objective of the Insolvency and Bankruptcy Code, 2015 is to consolidate and amend the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner. There is no single law in India that deals with insolvency and bankruptcy. As per the present legal framework, provisions relating to insolvency and bankruptcy for companies can be found in the Sick Industrial Companies (Special Provisions) Act, 1985, the Recovery of Debt Due to Banks and Financial Institutions Act, 1993, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and the Companies Act, 2013. Liquidation of companies is handled by the High Courts. Individual Bankruptcy and Insolvency is dealt with by the Courts.