Bankruptcy rules for individuals may be delayed due to workload of DRTs

Bankruptcy provisions for individuals and proprietorship firms, among others, under the Insolvency and Bankruptcy Code (IBC), are unlikely to be put into effect anytime soon due to a heavy workload on debt recovery tribunals (DRTs). Also, the notification of the rules on cross-border insolvency could be delayed further in the absence of e-courts, according to official sources.

The government planned to notify the bankruptcy provisions last year itself.

Among the issues being examined by a high-power committee on the IBC is whether or not to notify the bankruptcy and cross-border insolvency regulations.
 

A senior official of the Ministry of Corporate