Right intent, wrong definition

Section 29A of the IBC needs a hard look, indeed

Shyamal Majumdar

Sanjay Singal, promoter of the distressed Bhushan Power & Steel, is an angry man. In his petition before the Supreme Court, Mr Singal has questioned Section 29A of the Insolvency & Bankruptcy Code (IBC) as it is 'ultra vires' of some of the rights guaranteed by the Constitution. The section bars promoters of defaulting companies from bidding for distressed assets and was implemented with retrospective effect. But the simple question Mr Singal has forgotten to answer is this: Why is he so keen now to pay “fair value” for a company whose debt ballooned to Rs 450 billion ...