The government on Monday tabled its proposed bankruptcy code in the Lok Sabha, an attempt to pass some reform in a session where important economic legislation has run into an obstinate opposition. Finance Minister Arun Jaitley introduced the 'Insolvency and Bankruptcy Code, 2015,' which makes it simple for companies to be able to shut down.
The Bill is seen as being the most important economic legislation this Parliamentary Session, once it became clear that the government was not going to be able to push the Goods and Services Tax through. The code seeks to set up a regulatory authority to assist with insolvency matters in an effort to ensure that the process of shutting a company is done in a time-bound manner. It also amends a number of the other laws that currently make the process of declaring bankruptcy much more cumbersome. Jaitley has said before that the Bill is likely to help in India's efforts to improve the ease of doing business in the country, one of the international indicators that this government has focused on.
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