Insolvency cases involving individuals - MCA says DRT is not right forum
Published: Aug 29, 2017
By TIOLCORPLAWS News Service
NEW DELHI, AUG 29, 2017: Ministry of Corporate Affairs (MCA) has noticed that writ petitions are being filed before some High Courts stating that ‘The Presidency Towns Insolvency Act, 1909' and ‘The Provincial Insolvency Act, 1920' (enactments) have been repealed in view of enactment of the Insolvency and Bankruptcy Code, 2016 (Code) and the matters relating to insolvency of individuals be dealt under provisions of the Code.
In this background, the MCA has clarified that Section 243 of the code which provides for repeal of said enactments has not been notified till date and further 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 all the stakeholders who intend to pursue their insolvency cases may approach appropriate authority/court under the existing enactments, instead of approaching the Debt Recovery Tribunals.