With reference to the editorial, "Welcome step forward" (December 24), the National Democratic Alliance government introduced the Insolvency and Bankruptcy Code, 2015, in Parliament, aiming to bring in significant changes to an outdated and overburdened bankruptcy system by setting deadlines for the first time for processing insolvency cases.
Yes, it was introduced in the form of a money bill, which might set an unhealthy precedent. But given that the Congress "misused" its majority in the Rajya Sabha to stall two sessions in a row - first, the monsoon session and now, the winter session - many critical bills might not have been tabled at all. Hence the government sought to present the insolvency code as a money bill to bypass the Rajya Sabha.
Current laws delay the liquidation or revival of companies - the process drags on for years without any substantial outcome. Against this backdrop, it is heartening to see this bill being tabled as it is expected to act as single bankruptcy code and resolve issues. I agree with the view of the editorial that efficient and optimum use of the powers of the Debts Recovery Tribunal, the National Company Law Tribunal and the Insolvency and Bankruptcy Board of India (the bill provides for setting up such a board) would be critical in deciding the fate of this bill.
Foreign investors would be tracking the developments regarding this bill closely as its success will likely make their journey in India more successful and smooth.
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Yes, it was introduced in the form of a money bill, which might set an unhealthy precedent. But given that the Congress "misused" its majority in the Rajya Sabha to stall two sessions in a row - first, the monsoon session and now, the winter session - many critical bills might not have been tabled at all. Hence the government sought to present the insolvency code as a money bill to bypass the Rajya Sabha.
Current laws delay the liquidation or revival of companies - the process drags on for years without any substantial outcome. Against this backdrop, it is heartening to see this bill being tabled as it is expected to act as single bankruptcy code and resolve issues. I agree with the view of the editorial that efficient and optimum use of the powers of the Debts Recovery Tribunal, the National Company Law Tribunal and the Insolvency and Bankruptcy Board of India (the bill provides for setting up such a board) would be critical in deciding the fate of this bill.
Foreign investors would be tracking the developments regarding this bill closely as its success will likely make their journey in India more successful and smooth.
Bal Govind Noida
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number