NCLT REAL INTENT IS TO FIND RESOLUTION FOR STRESSED CORPORATE ASSETS RATHER THAN LIQUIDATE THEM, SAYS ITS PRESIDENT AT PHD CHAMBER

NCLT REAL INTENT IS TO FIND RESOLUTION FOR STRESSED CORPORATE ASSETS RATHER THAN LIQUIDATE THEM, SAYS ITS PRESIDENT AT PHD CHAMBER

NCLT REAL INTENT IS TO FIND RESOLUTION FOR STRESSED CORPORATE ASSETS RATHER THAN LIQUIDATE THEM, SAYS ITS PRESIDENT AT PHD CHAMBER

 No.PR-130

January 3, 2018

New Delhi

NCLT REAL INTENT IS TO FIND RESOLUTION FOR STRESSED CORPORATE ASSETS RATHER THAN LIQUIDATE THEM, SAYS ITS PRESIDENT AT PHD CHAMBER

Justice M M Kumar, President, National Company Law Tribunal on Wednesday emphasized that the objective of the Insolvency and Bankruptcy Code 2016 is to find suitable and appropriate solution for stressed assets rather than laying stress on their liquidation as so many things are involved in the process including jobs and livelihood.

Addressing a Discussion on the Insolvency and Bankruptcy Code, 2016 under aegis of PHD Chamber of Commerce and Industry here today, Justice Kumar praised the attempts of the institutions such as National Company Law Tribunal and Insolvency and Bankruptcy Board of India for putting in place things for proper resolution finding in such a short time span.

He also complimented the role of resolution professionals in finding suitable and amiable solutions for stressed companies already referred to NCLT as also acknowledged their contribution in terms of becoming linkage between NCLT and IBBI.

Justice Kumar held that the sole objective of Insolvency and Bankruptcy Code 2016 is to find solutions for stressed assets arisen out of non-performing assets with best of intent as so many things are involved in the process and liquidation perforce would be the last way out which the tribunal would avoid optimally.

He, however, clarified that bringing about changes in the code is not the mandate of the NCLT as its job is to enforce the Code and not to ignore the law in its objective to find solutions for stressed assets.  “Bringing about changes in the Code is entirely something which stays in the domain of Parliament”, added Justice Kumar.

Executive Director, Insolvency and Bankruptcy Board of India, Dr. Mamta Suri who was also present on the occasion, however, added that the government and all its agencies are trying their best to find amicable solutions for the stressed assets of the corporate in close consultation with Committee of Creditors and other relevant agencies.

In his welcome remarks, President, PHD Chamber, Mr. Anil Khaitan  pointed out that NPAs have ballooned due to multiple reasons and there are a great deal of corporates that need suitable consideration of agencies involving in finding solutions for revival of their companies as many of them did not go NPA with intent but under different adversal circumstances.

Among others who were also present on the occasion comprised President, ASSOCHAM, Mr. Sandeep Jajodia and Chairman, Insolvency & Bankruptcy Committee, PHD Chamber, Mr. Mukesh Mohan Gupta.

Ends.

Koteshwar Prasad Dobhal

Consultant (PR)