NCLT to get more teeth
Govt aims to reduce delay in disposal of cases under Insolvency and Bankruptcy Code (IBC)
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New Delhi: The government on Monday said it is taking all steps to strengthen the National Company Law Tribunal (NCLT) to reduce delays in disposal of cases under the insolvency law.
In a written reply to a query in the Lok Sabha, Union minister Rao Inderjit Singh said that up to March 31 this year, in 252 of the 348 cases resolved under the Insolvency and Bankruptcy Code (IBC), "creditors have accepted realisation of 50 per cent or less of their admitted claims". IBC provides a framework for market-linked and time-bound resolution of stressed assets. Citing data available with the Insolvency and Bankruptcy Board of India (IBBI), the minister said that during the period from April 2018 to March 2021, 348 corporate insolvency resolution processes ended with resolution plans.
"The realisable value for creditors in these cases was 36.31 per cent of their admitted claims". As per the data, 45.86 per cent of insolvency proceedings were not resolved within the stipulated timeline of 330 days in 2020-21. The figure stood at 20.92 per cent in 2019-20 and at 16.41 per cent in 2018-19.
