Govt may adopt online settlement process for individual insolvency
The government is planning to adopt an online settlement process for individual insolvency. This adoption will help in reducing the legal costs for the individual, as the government dont want to have a process like IPR in solving the individual insolvency cases.
Union government is planning to come up with a revised individual insolvency framework. For the purpose, it has planned to refer to international laws for creation of the new rules for individual insolvency cases. Sources close to the development has informed Prakash Priyadarshi of Zee Business that the government has started studying international laws to frame the new individual insolvency rules.
In addition, the government is planning to adopt an online settlement process for individual insolvency. This adoption will help in reducing the legal costs for the individual, as the government don't want to have a process like IPR in solving the individual insolvency cases.
It doesn't want to adopt a mechanism where the two parties are supposed to sit face to face for the settlement of the case. In fact, it may adopt the insolvency model of the United Kingdom with some changes.
Besides, the Corporate Affairs Ministry has asked for strengthening the DRLT (Debt Recovery Law Tribunal) for Individual insolvency cases. It has also asked for increasing the number of DRLT.
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At present, there are 33 DRTs, which are overburdened with cases. In addition, the government is also considering the proposal to increase threshold limit to Rs 10,000 for individual insolvency.
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