Promoters in MSME sector need additional relaxation in IBC cases related to bidding of own assets

New Delhi, Jan 25 (KNN) Insolvency Professionals have asked for additional relaxation for promoters in the MSME sector with regard to bidding for their own assets, in cases where the Insolvency and Bankruptcy Code is witnessed.

"Insolvency professionals are not finding buyers for small companies (SMEs) due to various reasons in which IBC is invoked, unlike in cases of large companies where bidders are available," said Mamta Binani, a member of All India Insolvency Professionals Association.

She further added "In the absence of bidders, small companies are compulsorily going through liquidation once the resolution period is over”.

There is an urgent need for a strong resolution as MSME provide employment to large section of people and due to liquidation job market is declining in MSME sectors.

Binani said “soon three new National Company Law Tribunal benches at Jaipur, Bhubaneswar and Kochi will come up, taking the total number of benches to 14 , there is a plan to take the total number of benches to 24 over the next two to three years,"

Meanwhile, Press Club president Snehasis Sur commented “there was a need for continuous enhancing of professional knowledge for journalists on contemporary topics.”