Eye on more speed & efficiency, govt readies major strength upgrade for NCLT
NCLT), ToI reported on November 25.
According to the report, the government is looking to execute a massive expansion of the body by adding up to 100 members to it. At present, the sanctioned strength of the NCLT is 63. However, with the govt often slow in appointing new members, there are always vacancies in the body, hindering its functioning.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Leadership in AIVisitNorthwestern UniversityKellogg Marketing Leadership Development ProgramVisitIIM LucknowIIML Chief Marketing Officer ProgrammeVisitThe primary objective is not only to expedite the resolution of insolvency cases, which has significantly slowed down recently, but also to ensure a swifter resolution of company law matters heard by NCLT benches, according to a senior official cited by TOI.
The Insolvency and Bankruptcy Board of India (IBBI) has been closely monitoring the duration and procedures, engaging with the government and stakeholders to enhance the efficiency of NCLT.
Recent IBBI data reveals that 80% of insolvency resolution cases surpass the 180-day deadline, with 67% extending beyond 270 days, including the 90-day extension allowed under the Insolvency & Bankruptcy Code. A previous IBBI paper highlighted substantial delays at the admission stage.
As of September 2022, the US had 345 bankruptcy judges handling over 3.8 lakh cases. In India, from November 2017 to August 2022, 31,000 IBC cases were filed, with nearly 26,000 adjudicated. Additionally, from June 2016 to August 2022, 15,000 cases related to sections 230-232 of the Companies Act were filed, with 13,700 disposed of.
To address the challenges, the government is considering
