13.37 hrs.
Title: Introudction of the Sick Industrial Companies (Special Provisions) Repeal Bill, 2001.
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRIBALASAHEB VIKHE PATIL): Sir, on behalf of Shri Yashwant Sinha, I beg to move for leave to introduce a Bill to repeal the Sick Industrial Companies (Special Provisions) Act, 1985.
MR. SPEAKER: Motion moved:
“That leave be granted to introduce a Bill to repeal the Sick Industrial Companies (Special Provisions) Act, 1985.”
MR. SPEAKER: Shri Basu Deb Acharia, this is introduction stage. You can talk on technical points only, not on the merits of the Bill.
* Published in Gazette of India, Extraordinary Part-II, Section-2, dated 30.8.2001
*SHRI BASU DEB ACHARIA (BANKURA): Sir, the Sick Industrial Companies (Special Provisions) Act was enacted in 1985 after which the Board of Industrial and Financial Reconstruction was constituted. We know that there are deficiencies in the Board. In spite of that, the main purpose of setting up that Board was to revive the sick Central public sector undertakings and sick private sector companies. If that Act is repealed, what would happen to those sick public sector undertakings which have been referred to BIFR and which are being examined by BIFR?
Just now the Minister of Law has introduced a Bill to amend the Companies Act. There is now a proposal to constitute the National Company Law Tribunal. It will be constituted later on. But, after the repeal of the existing Sick Industrial Companies (Special Provisions) Act, what will happen to those industries? The main purpose of repealing the existing Act is to expedite closure of the public sector undertakings. BIFR is examining them and in most of the cases trying to revive them. Even the recommendation of this quasi-judicial body are not being implemented by the Government of India. Even the financial institutions are not abiding by these recommendations. I know of a number of cases where the Government of India refused to provide financial assistance, refused to implement the recommendations of BIFR.
There are deficiencies, and those deficiencies can be removed. By replacing BIFR with the National Company Law Tribunal, the purpose of setting up of BIFR cannot be fulfilled. The Government is finding it difficult to deal with BIFR. The Government wants to close down some of the public sector units. But, BIFR is examining all aspects for their revival and the Government is not able to close down those units.
Even now, there are some cases where BIFR has not given the final order. But in spite of that, the Government has ordered to close down those public sector undertakings.
MR. SPEAKER: Shri Basu Deb Acharia, Rule 72 is very clear.
SHRI BASU DEB ACHARIA : Sir, there is no need to review this. This should continue. A new organisation should not be created to close down the PSUs expeditiously.
SHRI BALASAHEB VIKHE PATIL: Hon. Speaker, Sir…
MR. SPEAKER: Mr. Minister, there are two other Members who had given the notice to speak on its opposition. Let them submit their points.
SHRI N.N. KRISHNADAS (PALGHAT): Sir, BIFR is the only functioning system in our country to protect the sick industries of our country. If this Bill is passed, the existing system of BIFR would be wound up. But there are very many industries which have been referred to BIFR and no decisions have yet come. So, what will happen to the future of those industries? Everybody knows about BIFR. It is a semi-judicious body.
Sir, almost all the sick industries which have been referred to BIFR have been closed down.
MR. SPEAKER: Shri Krishnadas, you should be aware of the rules. This is not the consideration stage of the Bill. Here, you are speaking about the merits and demerits of the Bill. That can be done during the time of the consideration stage.
SHRI N.N. KRISHNADAS : Right, Sir. That is what I wanted to say at the stage of introduction of the Bill.
SHRI SUNIL KHAN (DURGAPUR): Sir, I rise to oppose the introduction of the Sick Industrial Companies (Special Provisions) Repeal Bill, 2001. How can the Government repeal this without considering other alternatives or mechanisms about revival of the sick public sector undertakings? What will be the fate of the 12 lakh to 15 lakh employees who are employed in the different public sector undertakings?
Sir, just now, the Companies (Amendment) Bill, 2001 was introduced by the hon. Law Minister, Shri Arun Jaitley. He referred about the Tribunal.
MR. SPEAKER: Shri Sunil Khan, come to the reasons. What is the reason that you are opposing it?
SHRI SUNIL KHAN : Sir, we are opposing it because this is nothing but the illogical outcome of the Government’s own acts to the closure and winding up of the several vital public sector undertakings. This is my submission. How will it be overcome? The vital reason for winding BIFR, in my view, is that the Government wants to close and wind up the public sector undertakings.
So, I oppose the introduction of this Bill.
MR. SPEAKER: Again, you are raising the merits and demerits of the Bill. It is not a technical point.
