Simple Tenets On Insolvency

To design a modern, workable law, we first need to know what the stuff is about, says Omkar Goswami

The government of India has set up a committee under Justice V Balakr-ishna Eradi to recommend changes in laws and procedures regarding corporate insolvency and winding up of companies. This is the third attempt in the last seven years to address this vexing issue. The first was the Goswami Committee on Industrial Sickness and Corporate Restruc-turing, which I had the privilege to chair. It was set up by Manmohan Singh and submitted its report in July of that year.

The second was the Working Group on The Companies Act. It was constituted by P Chidambaram in 1996, and the members slogged to produce a new Companies Bill which, among other things, radically altered liquidation procedures and brought the law in line with the times.

 

Neither of the two reports saw the light of legislative day. Although tame by today