Financial Daily from THE HINDU group of publications
Wednesday, Dec 18, 2002

News
Features
Stocks
Port Info
Archives

Group Sites

Corporate - Sick Units


`Cos Bill aims at reviving sick units'

Our Bureau

NEW DELHI, Dec. 17

PARLIAMENT on Tuesday approved the Companies (Amendment) Bill, 2002. The Rajya Sabha gave its nod to the Bill, which aims at integrating the procedure relating to restructuring and winding up of companies.

It proposes to put in place the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) so as to take over the functions being hitherto performed by the Company Law Board (CLB), the Board for Industrial and Financial Reconstruction (BIFR) and the Appellate Authority for Industrial and Financial Reconstruction as well as by the high courts and the local courts in winding up of companies.

The Finance Minister, Mr Jaswant Singh, said that the Bill was aimed at reviving sick industries and not winding them up. A Rehabilitation and Revival Fund would also be created, besides setting up of the NCLT, he said. The Bill has incorporated most of the recommendations of the Department Related Parliamentary Standing Committee.

He assured the Rajya Sabha that no employee of BIFR and CLB would be retrenched when these were disbanded and merged into NCLT. ``We will ensure that all those persons in the existing organisations are absorbed to the maximum extent possible. Nobody will lose their job'', he said.

He further said that if all of them were not being absorbed in the Tribunal, they would be absorbed elsewhere in the Department. The Tribunal would have 63 members and 25 benches. The Rajya Sabha also returned The Companies (Second Amendment) Bill, 2002, enabling co-operative institutions to voluntarily transform themselves into companies to compete with other enterprises on a competitive footing.

Send this article to Friends by E-Mail
Comment on this article to BLFeedback@thehindu.co.in

Stories in this Section
Indian Oil plans to tap S-E Asian markets


Jindal Poly defers decision on pref allotment
Nava Bharat to redeem pref shares
India takes up Polaris arrests with Indonesia
Polaris says dispute is commercial, not criminal
NFCL bags environment award
ICWAI may accept Pakistani's idea on name change
Bengal to move HC on CESC tariff issue
Ashok Leyland expects to save Rs 30-35 crore this year
Pepsi plans foray into bulk water segment
BIFR okays winding up of Mysore Kirloskar
`Cos Bill aims at reviving sick units'
BIFR pulls up Montari Leather for violating SICA provisions
Wipro sees energy practice chipping in 30% to enterprise
Indigo has a hard act of Indica to follow
JK sees China as global base for tyre exports
BPL home gadgets biz sees higher sales this season
69 companies registered in Nov
Tatas line up premium Safari launch
M&M unveils Bolero Sportz


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line