Will the proposed framework bring any sort of infrastructure problems?
Yes,
the proposed framework could bring in infrastructure problems for almost five
to six lakhs micro, small as well as medium enterprises (MSME). Already
existent NCLTs problems already intensifying.
Will the proposed framework bring any sort of problem for the bigger
enterprises?
Yes,
till government brings out the exclusive infrastructures in order to tackle the
problems poised, it will even affect the bigger enterprises, that could hold a
bigger threat as the bigger enterprises will have to face delayed resolution
making and also recoveries for the bank impossible.
Did anyone speak up on this proposed framework issues?
Ashish
Pyasi, an associate partner at law firm that goes by Dhir and Dhir associates
presented his view on this. According to him, it will be hell of a task seeing
the infrastructures present currently, to deal with the rise in no of cases
expected due to new proposed framework for MSME. He further presented his idea
of designing the proposed framework in a different manner, such that there will
be very less involvement of NCLTs or adjudicating authorities in this.
Likewise,
Priyanka Sinha, partner at law firm A and P Partner, had her view to present as
well. According to her, she believes that the need for MSME at present is
stakeholders dealing with it as one of the important issues of entire
Insolvency regime. She also opined that it will ensure MSMEs keeping their
business afloat.
Similarly,
Zerick Dastur, founder of law firm Zerick Dastur Advocates and Solicitors, stated
that the measures that are regulatory need to be assisted by arrangement of
proper and needed infrastructures as well as system that is effective for
implementing the given measures. He further clarified to why it is required. He
said that in order to make sure of the timely as well as effective dispensation
of justice, this was highly needed.
What role has NCLTs playing in this?
As
a result of NCLTs taking overburden, the suggested framework has appeared.
NCLTs have been continuously working on various reported cases and despite all
the limitations in logistics. It includes lacking the judges presence,
appointments that are delayed. There are presence of only 12 NCLTs courts, with
most of them lacking appropriate no of working staffs. Even among them, Mumbai
and the principal bench of Delhi have been facing the maximum no of cases.
Increment
of number of benches as well as some new recruitment of judges tried solving
and bringing the required changes in scenario. But it seems less than enough.
Almost
3774 cases were recorded as per Corporate Insolvency Resolution Process,
starting from inception time period, according to the data presented by
Insolvency and Bankruptcy Board of India. Out of which, around 2170 cases still
ongoing among various NCLTs. NCLTs similarly has to look after and dispose the issues
that are related with schemes, operations, mismanagement.
How many employees do MSME recruit and explain more on MSME?
Over
11 crore workers are given employment opportunity, by MSME, that contributes to
29 per GDP of India.
The
parliament is expected to table framework bill for the draft special Insolvency
resolution. Replacing the current 330 days timeline, it proposes of 90 days
timeline for process completion. It gives permission to promoters for defaulting
MSME in order for submission of plans for resolution.
The
framework is applicable in case of MSMEs with yearly turnover of Rs 250 crores
and an investment of Rs 50 crores in machinery items and plants.
Has Government spoken up anything that may help protection of industries
amid this pandemic?
Government
has announced various measures, in these past few months in order to provide
protection for the industries’ interests amid this pandemic. It includes suspending
the freshly taken initiative of insolvency proceedings under IBC for a time
period of 6 months.
If you need any help on MSME Registration feel free to contact us our Toll Free number 180030702070, Our Business advisor will explain you in details.
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