Insolvency professionals seek relaxation for MSME promoters in IBC cases

Insolvency professionals on Tuesday made a pitch for additional relaxation for promoters in the micro, small and medium enterprises (MSMEs) with regard to bidding for their own assets, in cases where the Insolvency and Bankruptcy Code (IBC) is invoked.
“Insolvency professionals are not finding buyers for small companies due to various reasons in which IBC is invoked, unlike in cases of large companies where bidders are available,” Mamta Binani, a member of All India Insolvency Professionals Association, said.
“In the absence of bidders, small companies are compulsorily going through liquidation once the resolution period is over,” she said at an interactive session on IBC jointly organised by Press Club, Kolkata and the Financial Journalists’ Club.
As a lot of employment is associated with the MSME sector, liquidation is hurting jobs, and hence, there is a need for a resolution.
Binani said that soon three new National Company Law Tribunal benches at Jaipur, Bhubaneswar and Kochi will come up, taking the total number of benches to 14.
“There is a plan to take the total number of benches to 24 over the next two to three years,” she said.
Meanwhile, Press Club president Snehasis Sur said that there was a need for continuous enhancing of professional knowledge for journalists on contemporary topics.