Finance Minister Arun Jaitley on Saturday said that Sick Industrial Companies Act (SICA) was an absolute failure and Debt Recovery Tribunals (DRTs) were somewhat faster but not as effective as envisaged. Arun Jaitley was talking at the National Conference on Insolvency and Bankruptcy: Changing Paradigm which was held at Mumbai on Saturday.
Following are the important points made by Arun Jaitley’s in this address at the national conference:
The SICA experiment was an absolute failure. The only effective purpose SICA served was that it provided an iron curtain against the debtors.
Being a creditor inherently put one at a disadvantage under SARFAESI law. SARFAESI law did serve some effective purpose for a while.
Under IBC any debtor has to service debt
Ultimate objective of IBC is not liquidation but resolution.
Finance Ministry will wait and see how effective the law is with regard to IBC.
RBI's earlier efforts met with some success but eventually it was still hard for creditors to change defaulting debtors.
National conference was jointly organised by the Ministry of Corporate Affairs (MCA), National Foundation for Corporate Governance (NFCG) and Insolvency and Bankruptcy Board of India (IBBI)..
Following are the important points made by Arun Jaitley’s in this address at the national conference:
The SICA experiment was an absolute failure. The only effective purpose SICA served was that it provided an iron curtain against the debtors.
Being a creditor inherently put one at a disadvantage under SARFAESI law. SARFAESI law did serve some effective purpose for a while.
Under IBC any debtor has to service debt
Ultimate objective of IBC is not liquidation but resolution.
Finance Ministry will wait and see how effective the law is with regard to IBC.
RBI's earlier efforts met with some success but eventually it was still hard for creditors to change defaulting debtors.
National conference was jointly organised by the Ministry of Corporate Affairs (MCA), National Foundation for Corporate Governance (NFCG) and Insolvency and Bankruptcy Board of India (IBBI)..
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