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Letter to BS: Mediation can be before the insolvency process, not during

There should be no provision for mediation by amending the law

Business Standard 

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This refers to “Do not dilute IBC” (April 25). The conclusion that the mediation should be before the insolvency process and not during, is unexceptionable. At the same time, I want to draw attention to the very succinct comment on mediation made by Debashish Basu in today’s newspaper in his article under the heading, "IBC: Towards the inevitable". He has described this mediation mechanism as an impractical quick fix. I agree with him that this mediation will be one of the ways by which the promoters and lawyers will try to "game the system" into inevitable delay. If the promoters want mediation, they can do it before the insolvency process themselves. They do not need any legal provision for this. Once there is legal provision, they will play with it to buy time. According to me, it is easy to see the game. There should be no provision for mediation by amending the law.

Sukumar Mukhopadhyay , New Delhi

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First Published: Tue, April 30 2019. 22:16 IST