LI Network
Published on: 06 September 2023 at 16:43 IST
Madras High Court Judge, Justice Senthil Kumar Ramamoorthy, recently emphasized the significance of the Insolvency and Bankruptcy Code (IBC), highlighting that it represents a pivotal piece of legislation.
He noted that the IBC establishes a creditor-driven model that allows for the realization of a business’s value, as opposed to merely assessing the value of its assets.
Justice Ramamoorthy made these remarks during a book launch event in Chennai, where advocate Anant Merathia introduced his book titled ‘Defaulter’s Paradise Lost: Demystifying the Insolvency and Bankruptcy Code.’
The judge recalled that the IBC was enacted at a time when non-performing assets and debt defaults in India’s public sector banks were escalating. He mentioned how previous legislation, such as the Sick Industrial Companies Act (SICA) and the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, had their limitations in addressing these issues. SICA, for instance, was often misused to defer creditor actions through its moratorium provisions. SARFAESI primarily relied on asset value for realization.
The IBC, however, introduced a creditor-driven model that enables the realization of a business’s value beyond just assessing its assets, setting it apart from earlier legislations.
Justice Ramamoorthy commended Anant Merathia’s book as a comprehensive guide to the IBC and recommended it for judges, lawyers, and all stakeholders.
Dr. TK Vishwanathan, the Guest of Honor at the event and former Chairperson of the Bankruptcy Law Reforms Committee, shared insights into his role in drafting the IBC and highlighted the importance of data in the legislation.
Merathia, a corporate litigator and disputes resolution lawyer, explained that his book aimed to serve as a reference guide for all stakeholders by simplifying the complexities of the IBC.
He stressed the need for professionals, including chartered accountants, auditors, company secretaries, consultants, finance officials, and bankers, to stay updated with changes in the law, as management relies on them for timely advice.
Merathia emphasized that ‘Defaulter’s Paradise Lost’ is not just a book but a progressive initiative to empower all stakeholders impacted by the dynamic and complex legislation.
The launch event was moderated by advocate and legal columnist Sanjay Pinto and attended by legal luminaries and experts in the field.
