Published: August 19, 2018 12:53:49
The government has no Immediately plan to extend the period of insolvency resolution of up to 270 days now, a senior official said on Saturday, adding that a separate law was in the making to a skillful pool of regulated registered appraisers.
Speaking at an event organized by the industrial lobby CII in Mumbai, declared business issues Injeti Srinivas that even the insolvency and bankruptcy code (IBC) stabilizes, good appraisers the crucial missing link in the process now as "most insolvency professionals are ill-equipped if it is a new area for them is ".
"We assess whether we can have a full-fledged law to regulate them (registered appraisers) because they are most critical in the success of the insolvency process," he said.
Srinivas justified the current timeline for the resolution process – 180 days after a case was triggered that could be extended for another 90 days with the approval of the National Company Law Court – timely reporting of default to the regulator and their time-related removal was crucial for maintaining the value of the highlighted assets.
Although NCLT & # 39; s have admitted in most cases and have lived through the extra 90-day period, many stakeholders demanded that the resolution be extended by 360 days, given the complexity of the process and practical problems.
The Secretary said the acceptance of late bids by NCLT & # 39; s probably would not be repeated, with the introduction of section 12 A in the code. "The accepted bid preceded the recent change In the second regulation, section 12A was just introduced to address this problem, saying that if the deadlines are over, you can not accept a late bid," he said.
Speaking at the event, insolvency and bankruptcy council of India (IBBI) chairman MS Sahoo said that the focus of the IBC process was on timely solution rather than on recovery. "Recovery leads to the death of a company, while the resolution is passed to save the company, we should not concentrate on recovery … focus remains on resolution, but while we are working on a solution, the possibility of recovery should not IBC is not a recovery tool, nor is it a tool to maximize value for creditors, "Sahoo said.
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