NEW DELHI: The Lok Sabha on Friday took up for consideration The Insolvency and Bankruptcy Code (Amendment) Bill, 2017 which has been opposed by RSP member N K Premachandran, who described it as a tool of “destruction”. “….this bill gives the message that destruction is liberalisation,” Mr Premachandran said in the Lower House.
He also took exception why the government resorted to take the Ordinance route to push the new law just a three-weeks before Parliament was to meet for the winter session.
“I fail to understand why the Ordinance was brought on November 23 when the winter session was summoned on December 15,” he said.
The RSP member from Kerala claimed the new amendments brought by the government into the Insolvency Act had several lacuna.
“It has provisions under which minority share holders may have upper hands…..moreover, there is no protection for labourers,” he said. The lawmaker from Kollam said the new law would have hardly anything to do with “revival” of the companies but would rather lead to the liquidation process.
Piloting the Bill, Finance Minister Arun Jaitley said the Ordinance had to be brought in as there were large number of “pending cases” and even persons who would be “ineligible” under the new criterion have been applying for the insolvency process.
“This law is new in India that came into force from December 1, 2016 and that way we are also in the learning process,” Mr Jaitley said. (AGENCIES)
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