Panel examining bankruptcy code given extension

NEW DELHI: The Joint Committee of Parliament examining the Insolvency and Bankruptcy Code, which seeks to provide an easy exit option for insolvent and sick companies, was today given an extension till the begining of the second part of the budget session to present its report.

A motion in this regard was moved by B Mahtab ( BJD) which was passed by a voice vote.

"That this House do extend time for presentation of the report of the Joint Committee on the Insolvency and Bankruptcy Code, 2015 up to the last day of the first week of second part of the budget session, 2016," read the motion.

Both Houses will go for a recess on March 16 and meet again on April 25.

During the winter session in December last, the bill was referred to a 30-member joint committee of Members of Parliament for further scrutiny.

The joint committee was to submit its report by the last day of the first week of the budget session (today).

The code aims at consolidating and amending "the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximisation of value of assets of such persons".

It also seeks to promote entrepreneurship, make available credit and balance the interest of all stakeholders by altering the order of priority of payment of government dues.