830 days: The time it took for the Essar Steel case to be disposed of. A large number of cases –535 at the end of September – are stuck in the insolvency courts beyond the stipulated time frame of 270 days.
- The recent Supreme Court judgement in the Essar Steel case established the primacy of financial creditors over operational creditors in the resolution process.
- While this judgement brings some cheer to banks, they cannot afford to turn complacent as insolvency courts have failed so far to resolve cases in a speedy manner.
- The Supreme Court bench has also clarified that while 330 days is the outer deadline within which a corporate resolution plan must be given shape, exceptions can be made on rare occasions in which a case is on the verge of being finalised.
- After the Supreme Court judgement, however, it is expected that cases before the National Company Law Tribunal (NCLT) and appeals before the National Company Law Appellate Tribunal (NCLAT), which are stuck over similar questions of law, will now get disposed quickly.
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A few links for further reading
Invest and emigrate
The great Indian dream of settling abroad is achievable if one has a few crores to invest. Rich nations offer a variety of investment options in a quid pro quo arrangement: immigrants get a better quality of life and revenue from them helps these countries’ finances. Wealthy Indians, troubled by polluted cities and the red tape holding up entrepreneurship, may want a quick ticket out of the country. Sanjay Kumar Singh lists a range of options: from a Canadian province’s investor programme to America’s US EB-5 plan.
Small savings schemes
Investors in small savings schemes breathed a sigh of relief when the government announced on October 1 that interest rates on these instruments would not be revised for the fourth quarter of the calendar year. With the economy witnessing a slowdown, and the stock markets also turning volatile, many investors are looking for alternative avenues to park their savings. Small savings schemes, with their sovereign guarantee, have emerged as a viable alternative.
Hard path to growth
The signals for the economy are not positive: overall demand is yet to pick up; the share of total exports in India’s GDP is declining, and industrial output pattern remains worrying.