1/13/99-CL-V

Government of India

Ministry of Law, Justice & Company Affairs

Department of Company Affairs

5th Floor, 'A' Wing, Shastri Bhavan,

New Delhi, Dated 22.10.1999

PRESS NOTE NO:11/99

Subject: Constitution of a Committee on Law relating to Insolvency of Companies

The Government has decided to constitute a Committee consisting of experts to examine the existing law relating to winding up proceedings of companies in order to remodel it in line with the latest developments and innovations in the corporate law and governance and to suggest reforms in the procedure at various stages followed in the insolvency proceedings of companies to avoid unnecessary delays in tune with the international practice in this field.

2. The terms of reference of the Committee include examination and making recommendations on the desirability of change in existing law relating to winding up of companies so as to avoid delays in the final liquidation, to suggest mechanism through which the management of companies will be conducted after winding up orders are issued and to specify authority which will supervise winding up, prescribe rules of winding up and adjudication of insolvency of companies , manner in which the proceeds of the assets of companies are brought to sale are to be distributed efficiently and propose a self contained law for winding up of companies having regard to the Sick Industrial Companies (Special Provision) Act, 1985 and the Securities Contract (Regulations) Act, 1956.

  1. The Committee will consist of :

    1. Shri Justice K.S. Paripoornan, Retired Judge of Supreme Court-

      Chairman

    2. Shri S. Ramaiah, former Secretary Legislative Department – Member

    3. Shri Subodh Bhargava, Nominee of CII – Member

    4. Prof. C.G. Raghavan, former Dean Professor & Head of the Department of Law , Nagpur University - Member

    5. Shri A.V. Sambhashiva Rao, Advocate, Vice President, All India Bhartiya Majdoor Sangh - Member

    6. Shri V.K. Bhasin, Legislative Department - Member

    7. Shri G.M. Ramamurthy, Chief General Manager (Legal) , IDBI

      - Member

    8. Shri U.P. Mathur, Advocate - Member

    9. Shri Shardul Shroff, Advocate , Delhi - Member

    10. Shri S.B. Mathur, Director (Inspection & Investigation ) , Department

of Company Affairs - Secretary

3. The Committee will function under Chairman and devise its own procedure. It may consult other experts in the field as and when considered necessary . The Committee will also consult Law Commission and incorporate their views in the Report.

4. The Committee will submit its report within six month from the date of its first meeting.

 

( R.D. JOSHI )

JOINT SECRETARY TO THE GOVERNMENT OF INDIA