Following the success of the Insolvency and Bankruptcy Code (IBC), the Centre is looking to soon come up with a legal framework to deal with individual bankruptcy in a bid to tackle defaults on personal debts such as home loans, reports The Economic Times.
Chairman of the Insolvency and Bankruptcy Board of India (IBBI), M S Sahoo, remarked that three types of entities will come under the ambit of the individual insolvency code, namely, personal guarantors to corporate debtors, proprietary firms and other individual borrowers. He declined to comment on the possible timeline for the introduction of the law.
It is likely that such a framework will only see the light of day after the general elections are over.
Sahoo was speaking in Mumbai as part of the launch of an academic programme to train 40 insolvency professionals each year. The course is called the Graduate Insolvency Programme and will be conducted by the Indian Institute of Corporate Affairs (IICA). The programme is open to individuals from all across the world.
“Even NCLT judges and professionals across industries will come to take classes,” stated managing partner of Delhi-based firm Kesar Dass B & Associates, Sumant Batra.