‘Bankruptcy Laws & Cross-Border Insolvency in India- The Way Ahead’ May 14, 2016
Organized by: -
CENTRE FOR TRANSNATIONAL COMMERCIAL LAW (CTCL)
NATIONAL LAW UNIVERSITY, DELHI
A one day seminar on ‘Bankruptcy Laws & Cross-Border Insolvency in India- The Way Ahead’, May 14, 2016, was organized by the Centre For Transnational Commercial Law (CTCL), National Law University, Delhi.
Prof. G.S. Bajpai, Registrar NLUD, in his welcome address, highlighted the efforts of NLU Delhi to expedite efforts and dialogue in various niche areas of law, and that this was an opportune time to discuss the consequences and provisions of the Bankruptcy Code which has been passed recently by the Parliament.
Hon’ble Justice Rajiv Shakdhar, Judge Madras High Court, in his Keynote Address, discussed the history of the Insolvency Code and the Companies Act of 1956, that earlier legislations were insufficient to address the modern needs of the market. Justice Shakdher mentioned that India’s experience with SICA is that a good law will come to nought if the administrators don’t apply it properly. The change– resolution professionals under the new act have been provided for to take over the management of the company. Another area of concern – four edifices – insolvency professionals, insolvency professional agencies, insolvency board and information utilities – have to be kick-started immediately to render this act more effective. Additionally, there is not enough attention in the area of personal bankruptcy. SMEs sector plays an important role in manufacturing and exports but since there are no specific provisions, a large sector is let out and renders the current act as a “corporate-centric legislation”; suggests a non-adjudicatory process for small debts, and that the fresh start provision needs a fresh look. Another concern area is Cross-border insolvency which needs a careful view.
Dr. T. K. Vishwanathan (Chairman BLRC), Highlighted the difficulties encountered and the challenges faced by the BLRC during the drafting of the IBC. Initially, bankruptcy courts/adjudicatory forum similar to the ones in the US were being thought of but ultimately the Committee adopted a pragmatic approach and tried to do the best with the existing mechanism.
Prof. Ajay Shah outlined the importance of Bankruptcy law in India. Promoters to be in control of the company – but this is not always an ideal situation for a company. Control is limited to being based on timely payments of the debt contracts of the firms. Business should be dynamic, hence takeover of control of a company doing badly could be good for promoters and entrepreneurs, who can then move on.
The 1st session was upon the Insolvency & Bankruptcy Code 2016 (IBC), the panelists included, Dr. T. K. Viswanathan, (Chaiman BLRC), Prof. Ajay Shah of NIPFP & member BLRC, Prof. Anjali Sharma of IGIDR and Ms. Richa Roy of AZB & Partners.
The 2nd session covered discussions upon Cross-Border Insolvency & the UNCITRAL Model Law on Cross-Border Insolvency. The panelists were Prof. Stefan Vogenauer of Max Planck Frankfurt, Ms. Maneesha Dhir of Dhir & Dhir Associates, Ms. Aparna Ravi who is member of BLRC and Dr. Risham Garg Assistant Professor (instructs course of ‘Bankruptcy Insolvency & Restructuring’ in LLM and as a seminar paper at NLUD).
The 3rd session was on critical appraisal and the contemporary challenges for the IBC 2016. The panelists included Mr. Pavan Vijay of Corporate Professionals, Ms. Misha Partner, Shardul Amarchand Mangaldas & Co., Mr. Divyanshu Pandey, Partner JSA, and Mr. Pratik Datta of NIPFP.
Dr. Risham Garg, Research Director of the Centre for Transnational Commercial Law at NLU Delhi, delivered the Vote-of-thanks. Participants consisted of law professors, practitioners, Ph.D. candidates and students of law from various National Law Universities, and other prominent law institutions across India.
Ms. Anjali Sharma, IGIDR- The Insolvency and Bankruptcy Code, 2016 (IBC)
Ms. Richa Roy, AZB & Partners- The IBC thinking/rationale and process for corporate and individual insolvency
Dr. Risham Garg, NLUD- Cross-border Insolvency: Case Study- EU, US, UK, India
Ms. Aparna Ravi, Member BLRC- Addressing Cross-Border Issues in Indian Insolvency Law Reform
Mr. Pavan Kumar Vijay, Corporate Professionals- Insolvency and Bankruptcy Code, 2016 – Ushering a New Economic Era
Mr. Divyanshu Pandey, Partner JSA- Insolvency and Bankruptcy Code, 2016- Contemporary Challenges
Ms. Misha, Partner, Shardul Amarchand Mangaldas & Co.- Insolvency Regulator under the IBC