The bill will improve the credit flow into the market and people will not depend excessively upon the banks for finance. People will be able to raise finance from the market & this legislation will be a very important legislation for the entire economy.

The debt recovery tribunal will double up as National Company Law Tribunal (NCLT) for individual and partnership bankruptcy debt recovery. These tribunals will have to be increased in great numbers which the finance ministry will do eventually. They have planned in a big way because we have to have NCLT throughout the country and throughout the districts. We are taking away the jurisdiction of the district courts. So, we are providing for circuit fitting at these debts recovery tribunals so that people are not deprived of access to justice at the grassroots level.

The Finance Ministry wants them to be high-tech tribunals with evidence taking into electronics means, electronic communication, etc. The national company law tribunal is already in position. It is going to be operational very soon. So, we have a structure ready with it to happen.

The whole process right now revolves around the specialists who were called as insolvency resolution professional. The whole process is abusive because of deterrent position which is sought to be changed by this present law, wherein an insolvency resolution professional takes over the management and decisions are taken by the creditors’ committee and moreover most of the decision will be taken and decided by the creditors’ committee.

There shall be Company Law Tribunal and Debt Recovery Tribunal playing a role of referee. They will not enter into market decision, which will be decided by the creditors mainly. So this will lead to reviving and rehabilitation of the companies very quickly and there will not be many scopes or claims to scuttle this.