IBC cases are proceeding quite well and many cases are coming very close to successful resolution, said Srinivas, Ministry of Corporate Affairs secretary.
He said efforts are being taken for amendments in the Insolvency and Bankruptcy code. “Once the recommendations are accepted by the government, they will go to the cabinet", said Srinivas. However, it is the government who will decided as to which of those will come into effect, he added.
"Sanctity of the system is important ... Out-Of-Court settlement within a time-frame may be allowed if 90% of Committee of Creditors is in its favor."Also read: More than 650 corporate debtors admitted for insolvency, says IBBI chairman
RETROSPECTIVE OR PROSPECTIVE
“Typically any change is prospective. I don’t see any reason for that to be disturbed. That’s the standard practice. And the recommendations also state that where a resolution plan has also been submitted, they should not get affected by these changes even if they were to come into place."
OUT OF COURT SETTLEMENTS
“A well framed, well structured system cannot be bypassed. So, there’s an elbow space there, a time limit till when this can be allowed, the date of reckoning is the date of submission of the resolution plan. Once the plan is submitted then it will not be a very good idea to deviate from that process.”
ON PERSONS ACTING JOINTLY OR IN CONCERT
“Any person who is acting in concert or any person who is connected with the resolution applicant will still be covered. I have said It’s a better drafting that we have suggested, a person who is acting in concert, the person connected to that person, is not covered in the proposed recommendations.”
WHETHER THERE WILL BE AN IBC ORDINANCE
“It’s a call to be taken by the competent authority. Committee has made its recommendations, many of these are emerging challenges. So, if we need effective resolution, these need to be addressed. The committee in right earnest has made some recommendations, government will have to take a call on how many of these are essential, how many of these are desirable but there’s no urgency, so that’s the call the govt will take.”
ON CHANGING NATURE OF BIDS
“ If they are ( bids) identical then the rules will apply, if the character has changed then they will be new bids. If the format has changed and the character has changed, then, it’s not the same bid."
IMPACT OF HOME BUYERS AS FINANCIAL CREDITORS
“Housing sector is slightly different than the other sectors , and if you look at the figures, then in the case of JP, claims of the home buyers far exceeded that of the secured creditors. So, it’s a different story. You can’t neglect such a large chunk of stakeholders in some technical grounds."
First Published: IST