NEW DELHI: National Company Law Tribunal (NCLT) Chairman Justice M M Kumar on Saturday said that Article 14 of the Constitution (right to equality) can be invoked if the committee of creditors violates the Insolvency and Bankruptcy Code law while examining business restructuring plan and proposals.
“Article 14 of the Constitution can come in case of COCs (committee of creditors) violate IBC (Insolvency and Bankruptcy Code) law, Kumar said while addressing a seminar on ‘Business Restructuring-Evolving Legal Issues and Imperatives’ organised by PHDCCI.
Kumar further said in case of any violation of enacted law by CoCs comes into notice in examining the business restructuring plan and proposal referred to NCLT, the Article 14 of the Indian Constitution could be invoked.
However, he noted that the CoCs are performing their assigned role with tremendous efficacy and transparency.
Kumar held on to a view reiterating that Resolution Professionals (RPs) needed to be educated to the hilt and acquire adequate skills for resolution plans of business restructuring since these play a critical role in current dispensation.
He stated that the RPs are recruited through a rigorous process in which their experience of great deal is considered and most of them are doing good job.
“However, I would still add that the RPs needed a great deal of training in rendering a conclusive job since IBC is still and evolving jurisprudence in which not only the roles of RPs and other related professionals are equally critical.”
The NCLT, according to him is trying its best to settle the cases that come in to it for adjudication and liquidation of the corporate entity in its view is the last resort as the Tribunal works to its optimum to find business revival plans for sustaining the operations of the entities referred to it.
The IBC which is still evolving law is in certain senses a complete paradigm shift in compared to earlier laws as its focus is also to ensure and allow ease of exit for aggrieved corporate, pointed out Kumar.