New Delhi: Personal insolvency cases under The Insolvency and Bankruptcy code 2016 will be handled by Debt Recovery Tribunals (DRTs). Earlier, individual bankruptcy and insolvency cases were governed by two laws—the Presidency Towns Insolvency Act, 1909 (for the three erstwhile presidencies of Chennai, Kolkata and Mumbai) and the Provincial Insolvency Act 1920 (for all other areas). However, the shift from district courts to DRTs for all personal insolvency cases above Rs1,000 value has been drastic. A fresh start order (FSO) and an insolvency resolution process (IRP). In case the negotiations fail, the matter will proceed to bankruptcy resolution process led by a Bankruptcy Trustee who is appointed by the Adjudicating Authority.

Source: Mint October 17, 2016 19:07 UTC