Clearly the cross-border insolvency law, consistent with the UNCITRAL Model with least intrusion into each country’s domestic insolvency laws, is imminently likely to be introduced as new law. The framework law for group insolvency and cross-border insolvency of group companies cannot be far behind, to tackle the realities of global insolvency. Personal insolvency, partnership insolvency, personal guarantor insolvency have several social complexities and the odium attached to a “diwaliya” will open a Pandora’s box. But that has not precluded the government’s desire to plug the gaping holes in the laws.
The recognition of disputed tax claims mired in litigation from pre-GST regime is a staggering Rs.3.75 trillion and the Budget recognises the need to unload this baggage. A legacy dispute resolution scheme with appropriate carrots and sticks will help break the logjam of tax litigation on pre-GST law.
The Budget makes several futuristic announcements to stir foreign investment but the attempt to augment housing and housing rental industry by revising the national laws on tenancy is striking and far-reaching and a healthy option in a moribund archaic legal space. Revision of investment limitations in aviation, insurance, and commercialisation of space law and satellite sales is a welcome step to encourage investments.