New Delhi: Dr M S Sahoo, Chairperson, Insolvency & Bankruptcy Board of India (IBBI), yesterday, invited stakeholders to proactively give comments on the existing IBC regulations and other issues to IBBI. Dr Sahoo was speaking at the Seminar on “MSMEs and Insolvency and Bankruptcy Code, 2016”, jointly organized by FICCI with IBBI.
Referring to the order of the National Company Law Appellate Tribunal in the matter of Binani Industries Limited Vs. Bank of Baroda, Dr Sahoo said that the sacrosanct objectives of the Code are insolvency resolution, maximization of the value of the corporate debtor and promoting entrepreneurship, availability of credit and balancing the interests of all the stakeholders. Dr Sahoo emphasized the need to increase the value of the assets of the corporate debtor rather than focusing only on distribution of assets.
Dr Sahoo emphasized the importance of the Code in providing a new lifeline to a company when it experiences a threat to its life. The wide scope that the Code offers makes it much more effective ascompared to the previously available mechanisms.
Mr. U. K. Sinha, Former Chairman, SEBI in his address on ‘MSMEs as Debtors and IBC’ highlighted the role of an effective insolvency framework in preserving jobs and ensuring lower cost of credit in the economy. Mr. Sinha emphasized that overlap of insolvency regime for MSMEs with personal insolvency regime should be given adequate consideration while designing a framework for insolvency resolution for MSMEs.
Mr P K Malhotra, former Law Secretary, summed up the legal aspects of the Code concerning MSMEs as Corporate Debtors under the corporate insolvency resolution and liquidation processes and the risksand rewards associated with MSMEs. He also emphasized the positive role that can be played by alternate dispute redressal methods, including mediation, in addressing the insolvency issues of MSMEs.
The Seminar was also addressed by Dr. Navrang Saini; Dr. (Ms.) Mukulita Vijayawargiya and Mr. Sudhaker Shukla- Whole Time Members of IBBI.
Mr Mohit Saraf, Co-chair, FICCI Committees on Stressed Assets and Corporate Laws, spoke of the differentiated insolvency resolution regime for MSMEs vis-?-vis large corporates.
Mr Sanjay Bhatia, President, FICCI Confederation of MSMEs acknowledged the timely amendments made to the Code for MSMEs in line with the market realities.