Photo: Pradeep Gaur/MintNew Delhi/Mumbai: President Ram Nath Kovind gave his assent to an ordinance amending the Insolvency and Bankruptcy Code (IBC) on Thursday, barring errant promoters of defaulting companies from regaining control of their assets being sold under the bankruptcy process. It is sufficient grounds to disqualify them,” said Shardul Shroff, executive chairman of law firm Shardul Amarchand Mangaldas. There is also the concern that if the classification of a debtor as a wilful defaulter is challenged in court, it could complicate the insolvency resolution process. “The amendments are unduly harsh to bona fide defaulters and guarantors,” said Sumant Batra, managing partner at law firm Kesar Dass B and Associates. Umarji, who was a member of the Bankruptcy Law Reforms Committee that drafted the new law.

Source: Mint November 23, 2017 10:30 UTC