ind Evolution ratory nsitves ave a dszoed alot NS Genesis sted ight from the pre-independence das aonatsation ofBanksand ff xp} monitored 1n1976,HN. Ghee) bebere sass, (asta dealwth he proved sme me problemot Temporary spp sidness tinier Som state cijectivesand rameters, remedies necessary for ‘eval ofc ‘nis ‘Thus the SICA came into existence in 1985 and BIER started functioning from 1997: TOE) tof India set up a High level Commitee headed by Justice VB. Brad. to om ‘the year 1999, the Governmet nd make recommendations wit smpanies 50 as to achieve mor sgnized after considering international pract lian economic scene, inges in existing law relating to winding up of in the final liquidation of the companies: The veney should not only provide it should frst look atthe possibilities of ehabitaHon «in paragraph 3 ofthe Prefae)-The Committe alse recognized thefacthat ie have important consequences In cise of enrEr with assets and i cede streamline theeistngnsavene a India raed eat the json owen and SoS 1 Company Law Tribunal ith regard to the desirability of cha e transparency and avoid delays smmittee recot tices, thatthe law of inso for quick disposal of assets but in Indi snd revival of companies (as mentione ces in national laws and procedu different countries, thereby there was a urBent Jaw. The Committee also recomTress " eon earare ized after considering International practices that hela fn Reconnect naaan comics eae ererastomne= ‘The Committee noted that there were thee different agencies namely, a w eH which bad powers to order win panies The es Cou te Pgh cors were notable devote existe atentog Companies Acti to conchde the winding up of companies gulch; ‘Fae Company lw Board to eerie powers conferred on thy the Companies ct 19 ofthe Central Government delegated to it; and Reconstruction (BIFR) which dealt with dustrial companies. However, the experime ‘Board for Industrial and Financial rehabilitation and revival of sick in ‘50 encouraging. oe tn order to overcome the said issues and to avoid mulpliity of fora, the Con ‘reed for establishing National Company Law Tribunal asa specialized agency’ ehablltation revival and winding up of companies. ‘The committee broughtout the dismal time taken to wind up a company in India. upto 25.years. EEE TN WOOO TO OOO) The vioryGroupesamined the detalsonfcting dedsionsontribnnaliation ofjustce. Trbunalise justia haracter efi law stem. ina common iw culture there isan emphasis on judicial form and formalities The between the so ses snothng nei India. Both the systems, that is the common law and the civil law sow coming closer common law systems adopting structure of administrative authority including administra forthe manage of varios sate funciona the lsat on the other hand, eorpog He of accusive system and judicial process, In india, we have under the present constitutional paradigm partially trbunalsed form of justice under Arte 323 Aand 323 B20. Bt there are also judicial observations. Tes et ee aan. Supreme Court finally gave its nod in favour of tribunalised system of justice, But the res Judy agin the erosion ful power especialy ate High Cour evel ule evident es not pase se jrteeion othe High Cour under ares 226an 227 whteatamericg he ee tae ‘ne advisory Group discussed in deal the possibilty of avoiding the dualism inthe system so that He Putintoastraghtline to avoid delay. In that context the following two methods have been ‘Constituting a National Tribunal with benches at the jurisdiction of each HighBe sol carpal a Vl bs tle afte GPR Ter a welcome attempt t provide India with a modern Company law to meet the requntenen a, omy, Few ofits recommendations were as follows ots the government ‘objective ofthis ce inthe national Prive econ sveney. ‘Tribal should pig irimrusie and | [Te Tlbunl shoud set standards sSicin the rehabilitation | | of high quality ad be able to mest ulzion procs, Grate | | registleva of publ epectatone Mon of the Tribunal i | ) offaimess impartiality transparency jn ty reasve disputes by | frand. accountaily. Selection of} pPteaeive an adequate qualia ony eet noproach, The | [President and Members of the | PetWetion for appointment to the “Tribunal. should be such so as to as well as training and pra esl dispute resolution | fenable a wide mix of expertise for | continuing eiication for judges] the established legal | | conduct ofits work. bes offeirmess inthe process ‘should be made in such way Standards to measurethe competence, | Pre Tribunal should have clear ‘ensure ready access to court Performance and services of the | Pouthority and effective methods of Lea cours hessngs, debtors | | Titunal_ should be framed. and | V enforcing its Judgments, Ie should ene hate ear | | ott proper natn | |e Sta ps el th ss done a ater provements} Vie cy oat conti ae jonble Finance Minister in his Budget Speech of 2014-15 announced that an entrepreneur friendly legal inty framework would be developed for SMEs to enable easy exit. Pursuant to the above announcement, fruptcy Law Reforms Committee (BLRC) was set up under Shri TK Viswanathan, former Secretary General, Lok 2 former Union La Secretary, on 2282014 t study the corporate Dankrpty lel framework in India ubmita report. lights of Committee Report Tae, ‘The objectives ofthe Committee were to resolve insolvency with: lesser time involved, lesser loss in recovery, and higher levels of debt financing across instruments. The Committee had recommended a consolidation of the existing legal framework by repealing wo laws ‘and amending six others. It had proposed to repeal the Presidency Towns Insolvency Act, 1909 and the Provincial Insolvency Act, 1920. In addition, it had proposed to amend: () Companies Act 2082, (ii) Sick Industrial Companies (Special Provisions) Repeal Act, 2013, it) Limited Liability Partnership Ack 200% (wy) peumtization and Reconstruction of Financial Assets and Enforcement of Security Interest At, 2002, (v) covery of Debts due to Banks and Financial Insitutions Act, 1993 and (vi) Indian Partnership Act, 1932, ji Committe had proposed to establish a creditors committee, where the financial ereitors will have votes ! proportion to their magnitude of debt. ‘Tre creditors committee would undertake negotiations with the debtor to come up witha revival or repay ent plan.snd th procedure or sven restuon for ompanes and nda TB ler the debtor or the credo vers (eedtors holding collateral against loans), cul sare canmitee had proposed that operational ced ag ced att the insavency resolution process (IRF. The report o belntlated 28 tin ony ced anc Spplction for dedaing a company si ployees whose salaries are de, eal ‘i rofessional. During the IRP, the pro ‘Te etre IRP would be managed by license insolvency pofesio . sre jhunape these ofthe debtor to ensure tha they are protected, while the negotiations “The Committe had proposed ose up Insolvency Professional Agencies. The agencies would admitin professionals as members and develop a code of conduct. the debtors. To ensure this a 180 day time period for completion of the IRP was recommended. For case high complexity this time period could be extended by 90 days, if75% of the creditors agree, ‘The Committee had proposed to establish information utilities which would maintain a range of inf bout firms, and thus avoid delays in the IRP, typically caused by alack of data. ‘The Committee had proposed to establish the Insolvency and Bankruptcy Board of india asthe regulato® tom ‘oversight over insolvency resolution inthe country. The Board would regulate the insolvency prof and information utilities, in addition to making regulations for insolvency resolution in India. ‘Tribunal would continue to have jurist United laity partnerships; and (it bankruptcy resolution of individuals appoint Diferentdates maybe app to the commencement ofthis Code.