Govt seek views on draft rules on Revival & Rehabilitation of Sick Companies

New Delhi, Mar 11 (KNN) Government has sought suggestions and comments from stakeholders on Draft Rules on Revival and Rehabilitation of Sick Companies.

National Company Law Tribunal (NCLT) and its Appellate Authority is at an advanced stage of constitution. After its constitution, it is proposed to commence the provisions relating to Revival of sick companies (Chapter XIX) of Companies Act, 2013.

“The draft Rules for the said provisions have been prepared by a Committee consisting of Ministry officials and Experts drawn from various fields,” Ministry of Corporate Affairs has said in a notification.

The Ministry has called for suggestions/comments on the draft rules along with justification by 14th March, 2016 through email at revival.rules@mca.gov.in.

“The Committee has made an endeavor to draft the Rules in accordance with the scheme of the Act which is a creditor – oriented process of revival and rehabilitation,” the Ministry notification said.

Further, special care has been taken to make rules and forms to provide the relevant disclosures to ensure transparency in the process and strict timelines has also been provided so as to ensure timeliness of the process.

The Committee has also drafted a set of Regulations so that the Tribunal may control its regular functioning in respect of the implementation of Rehabilitation Rules, it added. (KNN Bureau)