'2 Years of Bankruptcy and Depression Code'

'2 Years of Bankruptcy and Depression Code'


Earlier governments used to take measures to manage merchant bankruptcies. The laws in this case have failed completely. Laws rehabilitated, sick industries got protection from it. The Debt Recovery Authority was created for banks to recover the loan. But all these options failed.

The SARFAESI Act made by the NDA government under the leadership of Shri Atal Bihari Vajpayee was superior to that. When the bad debts became very expensive in 2000, the above laws and the Reserve Bank's policies helped to improve the situation. But during the period 2008-2014, banks have deliberately distributed debt. The government was required to take immediate action due to the bad debts created. The expert committee appointed for this has reported in 2015 and the parliamentary committee has been able to politically correct the above legislation. In my opinion, it was the fastest legal change ever made in the financial sector. In this, the establishment of a National Company Lawsuit Arbitrator and the bankruptcy cases went before them.

Till now:


The process through IBC is very satisfying so far. The debtor-creditor relationship has changed. The chase in both of them has stopped. Also, it has been noticed that there is a lack of improvement. The National Company Act Arbitrator has been very credible. Management of companies that are shuffled with bankruptcy is selected and new teams are selected through transparent, authentic process. There is no political intervention in this process. The following three innovative methods are used for recovery of loans:

Companies are honestly repaying debt to read through this process. In cases where the cases of potential bad debt have decreased considerably, the cases registered in the National Companies Act are filed by paying the loans in the primary stage and getting them out of the process. Many proceedings of the bankruptcy proceedings have been completed and where it is not possible, the banks are being lent by selling the companies there. .

The functioning of National Company Law Arbitration has increased the number of cases registered in the case of loan and according to which the capability of arbitration is being increased. Some of the decisions taken by the Supreme Court have given the process more speed. Also, the confusion has been overcome in these matters.

Figures

National Company Law Arbitrator - Registered cases of 1322 (Rs 2.02 lakh crore)

Issues awarded (primary stage) 1622

(Second phase) 66

Aviation Issues 260

Recovery Loan - 80 thousand crores

Bhushan Power and Steel and SR Steel India Limited are expected to come to the conclusion of the results.
'2 Years of Bankruptcy and Depression Code' '2 Years of Bankruptcy and Depression Code' Reviewed by S Current Affairs on January 05, 2019 Rating: 5
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