Moving ahead with the selection process for chairman and members of the Insolvency and Bankruptcy Board, the Government has notified certain provisions of the new law that aims to make debt recover process more strong. The Insolvency and Bankruptcy Code, 2016 -- notified by the Government in May -- seeks to consolidate and amend laws relating to reorganisation as well as insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner.
Corporate Affairs Ministry has already sought applications for the post of chairman and three whole time members at the Insolvency and Bankruptcy Board, to be set up under this law. With regard to the selection process, certain provisions of the law has been notified.
“The Centre hereby appoints August 5, 2016 as the date on which the provisions of sections 188 to 194 (both inclusive) of the said Code shall come into force,” the Ministry said in a notification. These sections have been notified to enable the selection of chairman and members to the board, a senior official said.