Speaker: Ms. Diksha Sharma

Ms. Diksha Sharma is a Chartered Accountant who worked as a Financial Analyst with NTT Data Services and her most recent experience includes working in the core team of a Resolution Professional of an Engineering, Procurement and Construction (EPC) Company.

Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016, totally changed the rules of the game of insolvent companies. Unlike earlier insolvency regime, the current regime provides for creditor-in-control model.

During CIRP, the powers of the Board get suspended and the same stand transferred to a Resolution Professional ("RP"). Hence, an RP takes over the management of the Company at a time when it is in doll drums, struggling to generate adequate cash flows.

The situation becomes worse when the company in CIRP is an EPC company.

Through this podcast we will deliberate on the practical difficulties an RP faces while handling CIRP of EPC Companies.

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Speaker: Mr Sarthak Ohri, Chartered Accountant

The Sick Industrial Companies (Special Provisions) Act, 1985 ("SICA"), was enacted to make special provisions for the timely detection of sick (and potentially sick) companies owning industrial undertakings. The Board for Industrial and Financial Reconstruction ("BIFR") was formed under the SICA to determine the sickness of such industrial companies and to prescribe measures either for the revival of potentially viable units or the closure of unviable companies.

With the advent of the Insolvency and Bankruptcy Code, 2016, the SICA has been repealed by the Sick Industrial Companies (Special Provisions) Repeal Act, 2003 (“Repeal Act”) with effect from December 1, 2016 and the BIFR and the Appellate Authority for Industrial and Financial Reconstruction (“AAIFR”) have been dissolved.

Listen to our podcast to understand how SICA functioned and what went wrong that it had to be repealed.

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