SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Bankruptcy Law Reform Committee submits report

05 Nov 2015 Evaluate

A government-appointed Bankruptcy Law Reform Committee (BLRC), headed by T K Vishwnathan, former Law Secretary has presented the report to the finance ministry, suggesting a modern bankruptcy law to deal with insolvency cases within 180 days that may arise on account of business failures or economic downturns, with a view to promoting ease of doing business and spur economic activities. The draft bill has been put for public comment till 19 November.

The report said that the Bill seeks to improve the handling of conflicts between creditors and debtors, avoid destruction of value, distinguish malfeasance vis-a-vis business failure and clearly allocate losses in macroeconomic downturns and has prescribed 'a swift process and timeline of 180 days' for dealing with applications for insolvency resolution. The bankruptcy panel has suggested setting up of different insolvency adjudicating authority for different entities, which would have the jurisdiction to hear and dispose of cases by or against a debtor.

The draft Bill also proposes establishment of an insolvency regulator to exercise regulatory oversight over insolvency professionals, insolvency professional agencies and informational utilities. Other proposals of the government panel include application dealing with insolvency could be extended by 90 days on approval from adjudicating authority in exceptional cases. During this period, the management of the debtor would be in the hands of an 'interim resolution professional'. The National Company Law Tribunal (NCLT) should be the Adjudicating Authority with jurisdiction over companies, and limited liability entities, it added.

The Bill includes a transfer of proceedings, where pending cases before the Appellate Authority for Industrial and Financial Reconstruction (AAIFR) or the Board for Industrial and Financial Reconstruction (BIFR) under the Sick Industrial Companies Act (SICA), 1985, immediately before the commencement of this law would stand abated. Finance Minister Arun Jaitley, has said that he would try to introduce the bill on bankruptcy law in the forthcoming Winter Session of Parliament.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×