India does have some laws — including one on Securitisation and Enforcement of Security — and other mechanisms, like Corporate Debt Restructuring or CDR, to address the problem of insolvency of firms. But the fact is some of these laws, such as the Sick Industrial Companies Act or SICA, have not worked because of inefficient enforcement and court delays.
Government recently introduced in Parliament the ‘Insolvency and Bankruptcy Code, 2015’.The code provides for time limit of 180, days extendable by further 90 days, for completion of insolvency resolution process.India is currently ranked at 136 on this measure in the 189-country ranking. Resolving a bankruptcy case can take on an average over four years in India.
Government is very keen on implementing it soon, as to improve ease of doing business in India.
i am talking about bankruptcy laws for individuals .
farmers are committing suicide just cause they are unable to repay their debts. .
can’t they simply declare bankruptcy and get rid of their diffeculties ?