Charu Mathur: Sir, coming on to my second query, it’s about IBC. How do you think this piece of legislation has fared? There is so much talk that India has leaps and bounds in places, in the ease of doing business index.

U K Chaudhary: I think that’s very correct! Understanding of the legislation by reaction on Insolvency and Bankruptcy Code, 2016 is very positive, and in my personal opinion, it has deeply impacted the working of the corporates and the working of the banks. It has also certainly helped India to increase its ranking in the world ranking, relating to the doing of business with ease. And I’m very proud to say that as a president of the National Company Law Tribunal Bar Association, that National Company Law Tribunal in Singapore last year has been ranked as one of the most prominent coming up corporate jurisdiction and an award was conferred on the president NCLT in Singapore last year where Justice Kumar, the then president of NCLT was given an award to show the most prominent corporate jurisdiction in the Asia Pacific region. So, the Insolvency and Bankruptcy Code certainly has improved the business position, business ranking of India in the world ranking, particularly.

Charu Mathur: Sir, any lacunas that you feel that are there in this?

U K Chaudhary: See, few things which have come to the knowledge of the tribunal as well as the Appellate Tribunal and the Hon’ble Supreme Court, has been taken care of by the various amendments. In fact, in the last three years, various amendments have been carried, few small and few very prominent, and therefore the learning is a constant process. In this whole process, what is happening is that every time they find out that there is any loophole coming, which the lawyers are exploiting or courts are not able to live up to the expectations that it should do—justice to cooperates as well as justice to the various players and stakeholders under the IB Code, those are been taken care of. And a number of amendments had come, relating to the related person definitions, the promoters definitions, relating to the problems of the flat owners and the flat buyers in the real-estate companies and definition of the financial creditor. Various issues have already cropped up and I think they are from time to time been taken care of. But there are still some issues which are still pending for consideration, either before the Appellate Tribunal and also before the Hon’ble Supreme Court in which we're trying to assist both the Courts, to find out the correct meaning and also to find out the correct solution. And we own up a part, who are in the active practice of insolvency and the corporate banking resolution. We are doing our best to help and assist the Courts.

Charu Mathur: Certainly sir! Sir, do you see any behavioral change in the corporate or even in the banks like taking of loans or in the disbursement of loans.

U K Chaudhary: I think, certainly there is a conceptual change, not only in the trade and industry but also in the banking sector. The two things which I have noticed as a very active player in the practice of the insolvency and the corporate bankruptcy issues is that number one the corporate, i.e. the trade and industry, are now becoming very careful in borrowing money for the banks. They now realise that if there is an unnecessary borrowing that your corporates do not need that money, they are becoming very careful, and therefore very cautious approach on their part.

Charu Mathur: So, it’s a mindful expenditure on part. 

U K Chaudhary: Mindful expenditure, not to borrow excess money, not to borrow the money which is not required by your trade and business and there must be a proper application of mind before you go on borrowing money. That is certainly a perceptual change on the part of the corporate. On the part of the banks also, it is becoming very careful not to lend money without any due diligence or without a proper property, without proper valuation which earlier according to me has taken a hit on the various banks and therefore the banks are also very careful in lending money now. It may have its own repercussions because if there is not enough lending by the banks, then it will lead to less profitability or less business opportunities for the banks but I’m sure that the government is doing everything what is required to support the banks and also to increase lending. So long, it’s careful and cautious. I’m all out for it.