Mumbai: A senior member of the committee on bankruptcy law and one of its architects has voiced his criticism of the Ordinance that bars ousted promoters of an insolvent company from regaining control.
The Ordinance is obsessed with large borrowers, can adversely affect the fortunes of struggling small and mid-sized companies looking for a second chance, and can make defaulting companies vulnerable to predators, according to Mr Umarji, who was a member of the government constituted Bankruptcy Law Reforms Committee.
The insolvency issue and most discussions focus on big borrowers and large companies that would force banks to take deep haircut. But a large number of cases are small and medium scale companies where the promoter is insep…
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