Stakeholders, who intend to pursue their insolvency cases, need to approach appropriate authority or a court under the existing enactments, instead of approaching the Debt Recovery Tribunals, the Finance Ministry announced on Tuesday.
The ministry said that writ petitions are being filed before some high courts stating that the Presidency Towns Insolvency Act, 1909, and The Provincial Insolvency Act, 1920, have been repealed in view of enactment of the Insolvency and Bankruptcy Code, 2016.
On this basis, the litigants were claiming that matters related to individual insolvency and bankruptcy should now be dealt under provisions of the Code.
"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," the ministry added.
--IANS
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