NEW DELHI: Government may consider giving different treatment to small and medium enterprises (SMEs) under the Insolvency and Bankruptcy Code (IBC) since they usually have limited number of buyers and rely largely on promoters for a resolution.
It is my view that we have to consider the case of SMEs objectively since they form the backbone of the country and create huge employment, PP Chaudhary, minister of state for corporate affairs and law & justice, told ET.
A recent ordinance has amended IBC barring promoters from presenting a resolution plan for companies facing insolvency. This has put SMEs at a disadvantage by limiting their resolution options and forcing them to liquidate. If they (SMEs) face a problem, then the government c…
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