Aiming to explore the different dimensions relating to the insolvency and bankruptcy and the introduction of IBC 2016, the Federation of Indian Micro and Small and Medium Enterprises organized a discussion along with the NITI Aayog of Government of India recently in New Delhi inviting key stakeholders.

Emphasizing on the importance to have both a favourable entry and the exit for the MSMEs, Prof Bibek Debroy, Member of NITI Aayog spoke of the Insolvency and Bankruptcy code that was introduced last year.

“From the last twenty years the issue of a smooth entry and smooth exit have been a concern for the stakeholders, there is need to move away from the punitive nature of action that the MSME have to face in case of failure, there should always be a second chance” said Prof Bibek.

M.S Sahoo, Chairman of the Insolvency and bankruptcy Board of India who was co-chairing at the discussion informed about the progress along the line so far. Sahoo said that the various procedures that are required on the part of the corporate when it comes to Insolvency and bankruptcy is been put in place. The introduction of the IBC in the year 2016 had been an important step towards enabling competition.

“The initial focus of the policy makers had been to improve ways of entering into the business, they later worked on facilitating enterprises to remain in business, and now we are finally focussing on the third important dimension that is the freedom to exit” added Sahoo.

MSME Secretary S.N Tripathi highlighted the provision of revival and rehabilitation for the MSMEs. Informing the success of the intuitive Tripathi added that there have been 46,000 cases out of which 41,000 cases have been taken up and addressed.

Also Sumant Batra, Legal Expert spoke on the insolvency and bankruptcy resolution as an industry. He also presented on the social aspect associated with the exit of a faulty enterprise.  

Representatives from various industries and FISME were also present for the discussion. (KNN/ DA)