'Individual bankruptcy provision under IBC yet to be notified'
New Delhi: Insolvency resolution provisions for individuals under the Insolvency and Bankruptcy Code are still to be notified, the government said today.
The clarification comes amid instances of writ petitions being filed before high courts saying that two insolvency related laws have been repealed following the implementation of the Code.
The enactments are 'The Presidency Towns Insolvency Act, 1909' and 'The Provincial Insolvency Act, 1920' (enactments).
On this basis, the litigants are claiming that matters related to individual insolvency and bankruptcy should now be dealt under provisions of the Code, the finance ministry said in a statement.
According to the ministry, section 243 of the Code which provides for repeal of said enactments has not been notified till date.
Besides, provisions related to insolvency resolution and bankruptcy for individuals and partnerships as contained in Part III of the Code are yet to be notified.
"Hence, it is advised that stakeholders who intend to pursue their insolvency cases may approach appropriate authority/ court under the existing enactments, instead of approaching the Debt Recovery Tribunals," the statement said.