New Delhi, Apr 5 (KNN) The 14-member panels headed by corporate Affairs Secretary Injeti Srinivas proposed various changes to the Insolvency and Bankruptcy Code (IBC) which will be prospective in nature.

Speaking at the conference organized by industry body CII, he informed the audience that the revised bids submitted under the insolvency resolution process will have to follow the new requirements after the amendments are in force.

Further he said that the new changes will not be applicable to those cases where resolution plans have been submitted even if they come into force.

On answering the query related to applicability of amended norms on revised bids he said that if the format has changed, it is not the same bid.

Regarding the Binani Cements matter where the National Company Law Appellate Tribunal (NCLAT) has asked the parties in dispute to amicably settle the conflict, Srinivas said that the government intension is not to interfere with an ongoing process where a quasi judicial body and an empowered body are looking at a live case.

Further he commented that the in order to rescue the company, the panel has to respond to emerging challenges.

Also, he said that competent body has to take decision regarding government opting or not opting ordinance to amend code in wake of panel suggestion.

Informing the media about panels’ recommendations, he said “government would take a call on the panel’s recommendations on “how many are essential, (how many) are not necessary and (how many) are desirable but (there is) no urgency”.

Since there are more than 5 crore Micro, Medium and Small Enterprises (MSMEs) thus there cannot be a “one-size fits all” system as he pitched for a special dispensation.

He said that to rescue class of companies like MSME’s there can be a special dispensation.

Some relaxation norms for MSMEs and treating home buyers as financial creditors are among the recommendations made by the panel. (KNN/YV)