New Delhi, Jan 17: The Competition Bill, 2002 and the Companies (second) Amendment Bill, 2002, passed during the winter session of Parliament, have received presidential assent and become acts. The Companies (second) Amendment Act, 2003, which seeks to amend the Companies Act, 1956, provides for a new, modern, efficient and time bound insolvency law to provide both rehabilitation and winding up of sick companies within a timeframe of a maximum of two years as against the existing system of between 18 to 26 years, says an official release here today. It envisages setting up of a national company law tribunal with several benches to be notified by the government all over the country and appeal from its judgement before the national company law appellate tribunal.
It also envisages taking over the jurisdiction of high courts in the matters of liquidation of sick companies, abrogation of company law board, Repealing of the Sick Industries (special provisions) Act, 1985 and dismantling of BIFR created there under. The government will implement this act from a date to be notified by the department of company affairs in stages, says the release.

Bureau Report