Surat: Chamber of Commerce organized an awareness session about the ‘National Company Law Tribunal’ Act. Loktej Surat, Business News
An awareness session on ‘National Company Law Tribunal’ was organized by the South Gujarat Chamber of Commerce and Industry (SGCCI), in Surat.
In which former judicial member of National Company Law Tribunal-Ahmedabad Dr. Deepti Mukesh was present as the chief guest. Bhavesh Modi, Chief Manager, Bank of Baroda’s Stressed Assets Management Branch-Ahmedabad was present as the special guest. While Insolvency (Insolvency) expert Chartered Accountant Kailash Shah was present as an expert speaker. The Banking (Co-operative Sector) and Banking (Nationalised, Private) committees of the Chamber of Commerce played an important role in organizing this awareness session.
Dr. Deepti Mukesh said that when the money borrowed for business cannot be returned, it is called insolvency and when the money borrowed from the bank cannot be repaid, it is called bankruptcy. In companies like MSME and Partnership, the money of the creditors used to get stuck and was not returned to the creditors. If the company is not paying the money to the creditors then in the year 1956 in the Companies Act, provision was made to wind up such company and pay the money to the creditors. In the year 2012, the bank’s NPA started increasing and even after giving authority to the bank, the money could not be recovered. When the bank, industry and business were in trouble, then in the year 2016, the new Companies Act came into force.
The debtor company itself can become insolvent without getting into legal tangles and approach the National Company Law Tribunal. MSMEs already have insolvency, under which the MSMEs themselves can frame a resolution plan. Efforts are being made to revive it even after 330 days in NCLT. He said that some start-ups cannot do business in two-three years after starting. So they can easily approach NCLT for bankruptcy. can be resolved in time. If we cooperate with each other then both trade and industry can be saved.
If a trader does not pay the money within 45 days, if there is a written agreement to pay the money within 45 days, then the trader can appeal against the creditor to the MSME Council and get back their stuck money. Now traders are also exporting their products in e-commerce, under the NCLT Act, companies and directors outside India can also be summoned to pay the money.
Bhavesh Modi said that the company should maintain financial discipline so that the company can run properly. When a company is not in a position to pay the money to the bank, the bank’s first attempt is settlement. Settlement means a resolution whereby the company is settled instead of sold. The resolution advisor takes over a company and doesn’t let it shut down. There is no limit to this resolution plan. The new management takes over the reins of the company and keeps the company running. The employees of the company also continue to work and the bank recovers its money.
CA Kailash Shah said that when a company goes to NCLT, the final authority is NCLT. The Monitoring Committee oversees the resolution plan till full payment is received from the company so that the stranded money is paid to the creditors. The takeover of the company gets rid of the old process and the new management takes the company forward in its own way, it is best understood in this law.