Nifty99000 100%

Sensex99000 100%

Article rating: 5.0
Article rating: 5.0
Article rating: 5.0
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.7
Article rating: 3.7
Article rating: 3.7
Article rating: No rating
Article rating: 4.0


Changes to insolvency law to be prospective, says MCA official

Author: PTI/Wednesday, April 4, 2018/Categories: Government

Changes to insolvency law to be prospective, says MCA official

New Delhi, April 4: With a high-level panel suggesting a slew of changes to the insolvency law, Corporate Affairs Secretary Injeti Srinivas said today that the amendments, as and when implemented, would be prospective in nature.

However, he indicated that revised bids which are submitted under the insolvency resolution process after the amendments are in force will have to follow the new requirements.

The 14-member panel, headed by Srinivas, has recommended various changes to the Insolvency and Bankruptcy Code (IBC).

Responding to a question on whether the amendments would come into force retrospectively, he said that typically the changes are "prospective".

"If the format has changed, it is not the same bid," he said. His response came to a query related to applicability of amended norms on revised bids.

Citing the panel's report, Srinivas said where resolution plans have been submitted, those should not be affected by the changes even if they were to come into place.

Against the backdrop of various ongoing insolvency cases, he said, "we are observing the developments" and asserted that the sanctity of the framework would have to be respected.

He was speaking on the sidelines of a conference organised by industry body CII.

Regarding the Binani Cements matter where the National Company Law Appellate Tribunal (NCLAT) has asked the parties in dispute to amicably settle the conflict, Srinivas said it is not the intention of the government to interfere with an ongoing process where a quasi judicial body and an empowered body are looking at a live case.

"But we have to respond to emerging challenges... the ultimate objective is to rescue the company," he added.

To a query on whether the government might opt for ordinance to amend the Code in the wake of the panel's suggestions, Srinivas said the competent body has to take the decision.

He said the government would take a call on the panel's recommendations on "how many are essential, (how many) are not necessary and (how many) are desirable but (there is) no urgency".

Noting that there are more than five crore Micro, Medium and Small Enterprises (MSMEs), Srinivas said there cannot be a "one-size fits all" system as he pitched for a special dispensation.

"There can be a special dispensation for a class of companies like MSMEs," he said.

Relaxations for MSMEs and treating home buyers as financial creditors are among the recommendations made by the panel.

Print Rate this article:
No rating

Number of views (319)/Comments (0)

rajyashree guha


Other posts by PTI
Contact author

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free