Sitting SC judge Justice Arjan Kumar Sikri slams parliament over poor drafting of Companies Act, 2013 and warned that it may lead to Tsunami of Litigations.
He Says that :
There appears to be no thinking behind drafting of Cos Act
Legislative authority of parliament has been delegated to rule making authorities within the MCA. Such delegation is not permitted under administrative laws.
Cos act exposes lack of legislative competency.
Legislative intent behind Cos Act is not clear.
Unless remedial measures are taken, Cos Act will cause extensive litigation.
He wasn’t the only eminent person who criticised the new law, at a book release function. M Damodaran, former Securities and Exchange Board of India (Sebi) chairman, termed it “an excellent piece of badly drafted legislation”.