Revival of sick companies helps create employment and push economic growth of the country, Justice AK Sikri has said.
It is in the interest of the Indian economy to look for all possible options to revive troubled companies, PTI quoted him as saying.
He was addressing a conference on Insolvency and Bankruptcy Code organised by BRICS Chamber of Commerce and Industry along with Achromic Point Consulting Pvt Ltd, the report said.
“Revival of sick companies in India not only benefits the company but assists in achieving high gross domestic product, generate employment and ultimately economy grows at a reasonably faster pace,” the chamber reportedly said in a statement quoting Justice Sikri.
A business friendly environment is mandatory for attracting foreign investments, he said.
Citing example of steel industry and real estate sector, he said external factors can make any company go sick.
“Change of management in a sick/troubled company is a significant provision in Insolvency and Bankruptcy Code 2016,” Justice Sikri reportedly said.
He added that balanced and fair negotiations between the debtor and creditor and amending law in favour of home buyers, time limit with in which resolution has to be done makes it unique unlike other acts passed.
Speaking at the event, NPS Chawla, Associate Partner, Vaish Associates Advocates said robust mechanism and proper implementation of the code is need of the hour.
