Article 14 Can Come In Incase COCS Violate IBC Law, Says Justice M M Kumar At PHD Chamber

President, National Company Law Tribunal (NCLT), Justice M M Kumar on Saturday observed emphasizing that Article 14 of the Constitution will come in if any violation of enacted law is noticed by the Committee of Creditors (CoCs) in examining the business restructuring plan and proposal referred to NCLT though the CoCs are performing their assigned role with tremendous efficacy and transparency.

However, Justice 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.

Addressing a Seminar on “Business Restructuring-Evolving Legal Issues and Imperatives” under aegis of PHD Chamber of Commerce and Industry here today, Justice Kumar though stated that 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 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”, said Justice Kumar.

Further elaborating on the roles of CoCs, Justice Kumar though largely appreciated their roles and observations relating to business restructuring plan referred to NCLT, however, pointed out that in case of any violation of enacted law by CoCs comes into notice, the Article 14 of the Indian Constitution could be invoked.

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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 Justice Kumar.

In his welcome remarks, Vice President, PHD Chamber, Mr. D K Aggarwal emphasized that the IBC should also provide for ease of exit as the issue is equally linked to entry of businesses.

Among other who were present on the occasion comprised Senior Advocate, Mr. Virender Ganda; Chairman and Co-Chairman, Law & Justice Committee, PHD Chamber, Dr. Lalit Bhasin and Mr. Aseem Chawla including its head of IR Committee, Mr. R K Joshi.

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