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INSIGHTS

Ground Report

The Insolvency and Bankruptcy Code, 2016 was enacted to provide for insolvency resolution of corporates in a time bound manner. It is inter-alia intended to act as one stop comprehensive solution to address the growing burden of debts and non-performing assets in the economy. With more than 2000 applications being filed in the last two years, a number of crucial issues came to fore. Issues such as interpretation of the provisions of the code, applicability of the code to various stakeholders, procedural clogs in the course of resolution procedure were some of the issues that Tribunals and Apex Court were encountering. The first amendment was promulgated in 2017 with the introduction of section 29A which clearly laid down provisions with respect to persons who are ineligible to submit a resolution plan. However, a lot was found wanting.

The Ordinance

In order to streamline the provisions and enforceability of the Code, the Insolvency (Amendment) Ordinance, 2018 was promulgated by the government which came into effect from 6th June, 2018.

As insight into the key provisions, Click here

Amendments – well intended

The amendments are a welcome change as they have been promulgated after consideration of interests of various stakeholders including home buyers as financial creditors safeguards interest of such investors who are neither repaid nor are given possession of their properties exposing them to sever hardships. The reduction of consent for voting members from 75% to 66% in majority cases has not only eased the conduct of the insolvency resolution process but also increased the chances of resolution plan being approved. Withdrawal of petition in certain instances is to ensure there is no loss of courts and also speedy conduct of proceedings. Providing relief to MSME’s and bringing the code under the Limitation Act are the icing on the cake!

THE IBC (AMENDMENT) ORDINANCE, 2018

What has been the turning point of your life?

Joining the Company Law Board

What do you consider your greatest achievement?

Being selected as  the Chairman of Company Law Board from among 30 High Court judges and Successfully heading it for over 12 years. I would consider the resolution of Sathyam Computer episode at a shortest duration as the greatest achievement

What is your definition of success?

The term “success” is a relative term, depending on the context. If one feels that he has done some thing to his satisfaction, he can call it a success as far as he is concerned

What is the one principle that has carried you this far?

Being honest and sincere

What is the one character trait or strength of yours that you admire the most?

Facing challenges in the job

What is the most valuable lesson learnt so far?

Be careful about time servers

What is the best indicator of your leadership?

Amiability and friendliness and motivating

What are your top two regular practices that have helped you in life?

Reading - All the time I read something, thus keeping the mind occupied and physical activity

What is your most important advice for time management?

I am weak in this area

What is the single most important factor that clinches a deal?

Logical explanation- both for and against an issue

What is the most important factor in resolving conflicts?

Understanding and appreciating others points of view

What is the most important indicator of performance of an organization?

It depends on the nature of the organization and hence there cannot be a single common indicator

What is the most important factor to foster innovation?

Aptitude of the person and motivation by and support of the management

What is a key factor in building and maintaining a strong team?

Strength of a team depends on the ability and personality of the leader of the team

If you are given an opportunity to live all over again what would you have done?

Same as what I have done so far

What is that one thing that you wish to change in this world using your talent and potential?

The world is so big that no individual talent and potential could change things as they are

How important is legal affairs to an organization and what should organizations do to attend to their legal affairs?

With ever changing political and economic scenario, law is also changing fast. Unlike in the past, the need of the hour is that every organistion should have a strong legal team to ensure that there is full compliance of applicable laws

What is one professional tip that you would like to share?

Keep yourself up to date in whichever field you are engaged. With world web, every information is available by a click. What is needed is aptitude and hunger for knowledge

 

 

A tête-à-tête with
S. Balasubramanian
- Former Chairman, Company Law Board

Q&A

WHAT'S BREWING

PATERNITY LEAVE:
“Daddy” time with kid(s)

It is well know that the Maternity Benefit Act, 1961 was amended and came into effect in April, 2017. The Act made significant amendments by allowing up to 26 weeks paid leave for expectant mothers.  While this was a major relief to the all working mothers, there seemed to be no law to address the issue of paternity leave (to be taken by father during and after their child’s delivery).

As of now, the All India and Central Civil Services Rules allow Central government employees 15 days of paid paternity leave for children born naturally to them or are being adopted. This is applicable to all Central government employees including apprentice and probationer. Such leave is to be availed within 6 months of the child birth or adoption. In the absence of such provisions governing the private sector, every organisation is fixing its own internal policies on granting paternity leave.

In 2009, despite there being no express law, the Delhi HC ruled that a private school teacher be entitled to paid paternity leave for the 15 days leave he took during his child’s birth.

In 2017, the Asia Pacific wing of Deutsche Bank delinked leave from gender and extended paid paternity leave of 6 months (the same it extends for maternity leave.), if they happened to be primary care givers.

However, it was in September, 2017 that an Indian politician initiated the Paternity Benefit Bill, 2017. Likely to be considered in the next session of the parliament, the main objective of the bill is to push for equal parental benefits for both the mother and the father. The bill proposes paid leave of up to 3 months to the expecting father. The core objective of the enactment being that child rearing/ raising is the joint responsibility of both parents. It is up to both parents (not only the mother) to ensure the child’s wellbeing. The bill is inclusive in nature as it aims at providing similar benefits to adoptive fathers and those who have had a child through surrogacy.

Efforts are on to constitute a parental benefit scheme where the government as well as employees contribute to the scheme.

Internationally, countries like Scandinavia were the earliest to initiate, regulate and provide paid paternity leave. Norway and Sweden followed suit. Swedish authorities believe that providing 2 months paternal leave has actually reduced the divorce in the country! Iceland, Spain and Germany are providing paid paternity leave anywhere between 30 days to 480 days.

Many fathers do not take leave during their child birth fearing that it may affect their career, professional growth and income / savings.

However, paternity leave enable new fathers to be present during child birth, support their wives during the challenging time of child birth, foster father-child relationship, share responsibilities pre and post child birth and generally contribute to completing the family. Alongside it curtails perceptions about gender stereotype.

In the fortnightly podcast, Mr. A.K Mylswamy talks about his experience handling corporate law case on M.A.S. Subramanian and 4 others Vs. T.S.Sivakumar and 6 others.
Listen in!

AT THE HELM OF AFFAIRS

INFOGRAPHIC

I Will

LEGAL-EASE

Abandoned property

Property over which the owner has given up dominion and control with no intention of recovering it.

Backwardation

In the language of stock exchange, this term signifies a consideration paid for delay in the delivery of stock contracted for, when the price is lower for time than for cash.

Cahoots

Partnership, teaming up or combining efforts.

Damnify

To cause damage or injurious loss to a person or put him in a position where he must sustain it. A surety is “damnified” when a judgement has been obtained against him.

Lawlipops

MY COUSIN VINNY (1992) (Movie)

When two cousins – college students from New York drive through rural Alabama, they shop in a convenience store. Shortly thereafter, the shopkeeper is robbed and killed and due to circumstantial evidence (and honestly confessing to accidental shoplifting), both cousins are charged with murder. They are reminded by family of their cousin Vincent “Vinny” Gambini – a “newly admitted to the Bar with zero trial experience” lawyer. From then on begins the trial – Vinny a loudmouth and aggressive lawyer up against the suave southerners. With circumstantial evidence to show that the two were the perpetrators, in a quirk of brilliance and presence of mind, Vinny is establishes with the help of tyre marks that the two are indeed innocent. This 1992 American legal comedy earned Marisa Tomei (who plays Vinny’s fiancée) an Oscar for the best supporting actress. Besides that all lead actors received critical acclaim from the legal fraternity for very realistic portrayal of courtroom procedure. A must watch!

JUDD FOR THE DEFENSE (1967-1969) (TV Series)

An American legal drama, the series ran for 2 seasons and 50 episodes. It revolves around the Clinton Judd, an up market hot shot lawyer who solves array of legal cases along with his able assistant Ben Caldwell. Believed to have been based on famous criminal defence attorneys, the show (in the late 60’s and early 70’s) dealt with some very controversial topics such a homosexuality.

(P)REVIEW

All progress takes place outside the comfort zone.

- Anonymous

© Copyright 2018 - A K Mylsamy & Associates LLP

What has been the turning point of your life?

Joining the Company Law Board

What do you consider your greatest achievement?

Being selected as  the Chairman of Company Law Board from among 30 High Court judges and Successfully heading it  for over 12 years. I would consider the resolution of Sathyam Computer episode at a shortest duration as the greatest achievement

What is your definition of success?

The term “success” is a relative term, depending on the context. If one feels that he has done some thing to his satisfaction, he can call it  a success as far as he is concerned

What is the one principle that has carried you this far?

Being honest and sincere

What is the one character trait or strength of yours that you admire the most?

Facing challenges in the job

What is the most valuable lesson learnt so far?

Be careful about time servers

What is the best indicator of your leadership?

Amiability and friendliness and motivating

What are your top two regular practices that have helped you in life?

Reading- All the time I read something, thus keeping the mind occupied and physical activity

What is your most important advice for time management?

I am weak in this area

What is the single most important factor that clinches a deal?

Logical explanation- both for and against an issue

What is the most important factor in resolving conflicts?

Understanding and appreciating others points of view

What is the most important indicator of performance of an organization?

It depends on the nature of the organization and hence there cannot be a single common indicator

What is the most important factor to foster innovation?

Aptitude of the person and motivation by and support of the management

What is a key factor in building and maintaining a strong team?

Strength of a team depends on the ability and personality of the leader of the team

If you are given an opportunity to live all over again what would you have done?

Same as what I have done so far

What is that one thing that you wish to change in this world using your talent and potential?

The world is so big that no individual talent and potential could change things as they are

How important is legal affairs to an organization and what should organizations do to attend to their legal affairs?

With ever changing political and economic scenario, law is also changing fast. Unlike in the past, the need of the hour is that every organistion should have a strong legal team to ensure that there is full compliance of applicable laws

What is one professional tip that you would like to share?

Keep yourself up to date in whichever field you are engaged. With world web, every information is available by a click. What is needed is aptitude and hunger for knowledge