Insolvency and Bankruptcy Code (Amendment) Bill will create oligopoly, says Kapil Sibal

Kapil Sibal
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New Delhi, July 29 : Congress leader Kapil Sibal hit out at the Centre for “creating an oligopoly in the country”as 4-5 major players were will be able to buy such companies at throwaway prices and demanded that the Insolvency and Bankruptcy Amendment Bill should be sent to a Select Committee.

The Rajya Sabha on Monday cleared a bill providing greater clarity to bankruptcy law and timely resolution of the cases.

Participating in the discussion earlier, senior Congress leader Kapil Sibal said the government had brought a legislation deciding the rights of parties while the matter is pending in the Supreme Court.

He said that this will not stand in a court of law. While, some of these amendments, of course, are salutary and the direction is right, but, I do not think that these kinds of legislations should be decided and bulldozed through Parliament without referring the matter to the Select Committee,” said Sibal.

“How can the legislation attempt to resolve a judicial dispute? That dispute will be decided by the court. And, you have given this legislation a retrospective effect. I am really surprised,” he said.

Replying to a debate on the amendment in Insolvency and Bankruptcy Code (IBC), Union Finance Minister Nirmala Sithraman said the seven proposed changes in the law are to largely remove the ambiguities and facilitate smooth conduct of the corporate and insolvency resolution process.

The proposed changes in the bankruptcy law are aimed at completing the corporate insolvency resolution process (CIRP) within an overall time limit of 330 days including litigation and other judicial process, maximizing value for corporate debtor and plugging various loopholes.

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