MCA issues draft norms for revival of sick companies
Ahead of setting up the National Company Law Tribunal (NCLT), the government has come out with draft rules pertaining to revival and rehabilitation of sick firms under the companies law. As it looks into put in place NCLT and its appellate tribunal, a committee set up by the Ministry of Corporate Affairs (MCA) has prepared these draft norms.
NCLT, proposed under the Companies Act, 2013, would replace the Company Law Board. The ministry has sought comments on the draft rules with respect to revival and rehabilitation of sick companies related provisions under the Act. According to the ministry, NCLT and its appellate authority is at an advanced stage of constitution. "After its constitution, it is proposed to commence the provisions relating to revival of sick companies (Chapter XIX) of Companies Act, 2013," it added.