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IBC Laws and strategy for businesses seem to be in the right direction, said Ramakrishnan Viraraghavan, Barrister & Senior Advocate on Saturday.
Viraraghavan was speaking at the Global Legal Leaders’ Summit 2023, organised by BW Legal World, in New Delhi.
He said the recent objectives of the Insolvency and Bankruptcy Code (IBC) include, Timeliness and Maximum Realisation of Values’ which are on the right track, yet need to be improved over the years. The barrister underlined marking the objectives’ significance.
Asserting this Ameya Gokhle, Partner, Shardul Amarchand Mangaldas stressed that insolvency is not just a recovery mechanism, which the clients generally assume. It is something that they need to be more conscious of what they are trying to achieve through their insolvency matter, he added.
He stressed that one should be clear whether they want their money back or are just wanted to be in the process following the mechanism. Because IBC is not to be followed just for the mechanism it’s a procedure where consciously all stakeholders should be aware that there is a company that is looking for revival and IBC is the solution, Gokhale said.
Furthermore, Viraraghavan stated liquidity, solvency and valuation as the three important pieces of advice to avoid IBC.
Along similar lines, Hardeep Sachdeva, Senior Partner, AZB & Partners said, it is important to find out other options that are available for financial institutions as a part of the strategy to get the money back.
He highlighted that when you are lending the money the choice depends on your securities.
Amresh Singh, Partner, HSA Advocate said reverse insolvency, project-wise insolvency, incorporation of homebuyers as financial creditors, regular amendments by regulators, etc should be looked at in a positive direction. But the fact is IBC is required to work in conjunction with the Real Estate Regulatory Authority Act (RERA).
Adding on to Singh’s perspective, Manisha Chaudhary, Managing Partner, UKCA & Partners said home buyers have the right under IBC to come before National Company Law Tribunal (NCLT) and get their rights triggered and done.
She stressed that in pragmatic views home buyers seem to be secure but on the contrary, they are not.
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