Photo: PTI Union Finance Minister Arun Jaitley
Previous laws were only partly effective in resolving the problems of insolvency and bankruptcy in the corporate world and one would have to wait to judge the effectiveness of the current mechanism to deal with the issue, Finance Minister Arun Jaitley said today.
“Earlier, if companies were for insolvency, they got stuck in courts indefinitely. The SICA merely provided an ‘Iron Curtain’ against debtors, otherwise it was an absolute failure and could achieve very little of the purpose for which it was created,” Jaitley said.
The Debts Recovery Tribunal (DRT) was somewhat faster, but not as effective as envisaged, while the Sick Industrial Companies Act (SICA) failed and the Securiti…
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