India’s government on Monday introduced a bill in parliament [official website] meant to improve the country’s current bankruptcy system and provide for resolution of insolvency in a timely manner. The bill, called the “Insolvency and Bankruptcy Code, 2015,” is aimed at creating higher economic growth [The Hindu report] through the promotion of investments. The bill seeks to put an end to the country’s current competing laws dealing with bankruptcy of companies by creating a single bankruptcy code. The lack of clarity in existing law means that bankruptcy processes can continue for years. In contrast, under the proposed bill, a corporate insolvency would need to be resolved within a 180 day period and could be be handled in as few as 90 days. The statement of objects and reasons of the bill also proposes the establishment of a fund to be called the “Insolvency and Bankruptcy Fund of India,” and said that existing framework is “inadequate, ineffective and results in undue delays in resolution.”
Banking regulations have been in the news frequently in recent years, both in the US and abroad. In August a judge for the US District Court for the Southern District of New York ruled [JURIST report] that New York City’s regulation of the banking industry through the Responsible Banking Act is unconstitutional. In July Greece’s parliament passed [JURIST report] a second set of economic reforms with an overwhelming 230-63 majority vote to help save the country from bankruptcy. In May the US Supreme Court ruled [JURIST report] that bankruptcy judges have the power to make final judgments in certain legal disputes.