Vikram Nair on Insolvency, Restructuring and Dissolution (Amendment) Bill

The bankruptcy regime is one that balances many competing interests, said MP Vikram Nair. It tries to protect creditors by ensuring that the assets of a bankrupt can be properly accounted for and distributed in a fair way to all creditors. It also protects the interests of bankrupts themselves by taking away the stress and pressure of having to deal with a larger number of creditors and allows them to continue working, earning a salary and meeting their basic living requirements, while ensuring that contributions are also made towards the payment of their debts. Bankruptcy also protects third parties dealing with the bankrupt, he said. Speaking in Parliament on Monday (Jan 9), he raised concerns for those with smaller claims and estates, and asked if they would no longer be able to avail themselves of the protections afforded by bankruptcy. He said the downside of requiring a private trustee in bankruptcy (PTIB) is that it may be difficult to find professionals who are prepared to administer small estates at an economic price, particularly where the applicant is the bankrupt himself. He wanted to know if there are safeguards, particularly for cases where PTIBs are not willing to take up an appointment.