The Trade Disciplinary Committee (TDC) set up jointly by the Gem & Jewellery Export Promotion Council (GJEPC), the Bharat Diamond Bourse (BDB) and the Mumbai Diamond Manufacturers Association (MDMA), has reportedly issued a circular for members of the respective organisations intimating them that action will be taken against entities which have declared bankruptcy/insolvency, and continue to conduct business through another entity, without discharging their liabilities, mentioned a report on gjepc.org.
According to news source, the actions include preventing such companies/entities/individuals from doing business from the premises of any of the trade bodies, which include the BDB Complex, and all locations of the GJEPC and the MDMA.
The actions proposed have been formulated under Sections 12 and 13 of the guidelines approved and passed by the TDC and the three bodies which set it up.
Clause 12 reads: “In the event any company/entity/individual has declared bankruptcy as per the market practice and its shareholders, partners, directors, and/or officers start business separately without discharging its liability then TDC shall be entitled to take action against such company/entity/individual as it deems fit including restricting it from carrying on business from the premises of any of the trade body as being part of the TDC.”
Cause 13 reads: “In the event of any company/entity/individual being declared bankrupt as per market practice and continues to carry on trade in the industry pursuant thereto with any other individual or entity or through dummy from the trade and the same is brought to the notice of the TDC, then TDC shall be entitled to initiate action not only against the Company/Entity/Individual declared bankrupt but also the person/company who supports or with whom the business is carried out or is associated with.”
The circular is for the information of all members and serves as a warning to those who have declared bankruptcy/insolvency to desist from carrying out any new business without first discharging all their liabilities.