Budget 2024: FM Proposes Integrated Technology Platform For IBC [Read Bill]

The Union Finance Minister Nirmala Sitharaman has presented the Union budget 2024 today before the parliament at 11 AM. The Finance Minister has proposed an integrated technology platform for Insolvency Bankruptcy Code (IBC) and also to take measures to strengthen tribunals across the country.

The Insolvency Bankruptcy Code was enacted in 2016 with the intention of settling legal issues regarding insolvency and bankruptcy. The code provides for a seamless exit for companies as well as individuals in such cases. Prior to the introduction of the code, there were many agencies that dealt with these matters but they often proved to be a hassle for the parties involved since the agencies required high cost and time for the process of insolvency resolution. Through the IBC code it was expected that such matters will be dealt expeditiously by resolving cases within 180 days with a further period of 90 days.

The code is applicable to companies incorporated under the Companies Act, 2013 or any other previous laws, any limited liability partnership under the Limited Liability Partnership Act 2008, Partnership Firms and Individuals.

It is notable that the National Company Law Tribunal (NCLT) saw a rise of 43% in debt resolution cases in the financial year 2023- 2024 as a direct result of the enactment of the code. In the year, the number of pending cases were lower than that of the cases resolved. With the proposal for an integrated technology platform for IBC, it is aimed to increase such outcomes under the code and also to create more tribunals for debt recovery

To Read the full text of the Order CLICK HERE 

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