Government invites suggestions to improve efficiency of the insolvency law: P.P. Chaudhary, MoS, Law and Justice, and Corporate Affairs, GOI
18 October, 2017
Govt open to considering changes to improve insolvency law: Minister The government is open to considering suggestions to improve the insolvency law as deficiencies crop up in implementation even as it is in the process of appointing judges in the National Company Law Tribunal to help the bankruptcy court handle the growing load of cases. “Government will consider all suggestions and try to incorporate them into insolvency law,” PP Choudhary, Minister of State for law and justice, said here on Wednesday while addressing Assocham’s National Conference Insolvency and Bankruptcy Code and Real Estate Regulation Act. Choudhary admitted that amendment-and-reform is a continuous process as no one can visualise future issues. He also informed that more judges will be appointed to the bankruptcy court soon. “Appointment of judges in NCLT is in the pipeline,” the minister said. Speaking earlier at the event, Dr Mukulita Vijayawargiya, member (law), Insolvency and Bankruptcy Board (IBBI), too admitted that there was scope to further improve the law. For example, she suggested that applications for appointment of Resolution Professionals could be invited from across the globe as that would lead to an improvement in quality and increase chances of distressed companies’ revival, thereby minimising the risk of liquidation. PK Malhotra, former secretary to the ministry of law and justice, said that the insolvency law is definitely an improvement over the law existing prior to its legislation. Institutions have been created consequent to implementation of the law and that “perfection is a mirror that we keep on chasing.” Putting in a word of caution, Malhotra opined that there should be minimum intervention by civil courts with NCLT proceedings. Drawing attention to deficiencies in the bankruptcy Act, Mamata Binani, the immediate past president to the Institute of Company Secretaries of India , said the law needs to be fleshed out as there is too much room for interpretation.