Aug 31, 2017

Over 655 cases decided under insolvency law, says NCLT President

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The NCLT has so far decided more than 655 cases under the Insolvency and Bankruptcy Code while all efforts are made to stick to the timelines, the tribunal's President Justice M M Kumar said on Thursday.

The Code, which provides for a market-determined and time-bound resolution of insolvency proceedings, became operational in December 2016.

A case is taken up for resolution under the Code only after getting clearance from the National Company Law Tribunal (NCLT) and subsequently, an insolvency professional is appointed.

"We have already decided at the NCLT more than 655 cases under the IBC. We have made all efforts to keep the time line," Kumar said here at an event to launch a book and a website on the Code.

The book titled 'Compendium on Insolvency and Bankruptcy Code 2016' and a website on the Code was launched by advisory firm Corporate Professionals.

While noting that there is some lack of knowledge and education about the Code, Kumar said sometimes there is lot of resistance from the management of an entity concerned to allow the insolvency professional to function.

Some corporate debtors have also tried to misuse provisions of the Code and the tribunal has discouraged it. "Adventurous people came before us and we were able to show them the right place," Kumar said.

Noting that insolvency professional is pivotal in the whole process, he said the emphasis should be to bring back the company to its operations and that can be done by them by finding out of the box formulae.

Among others, 12 cases of NPAs identified by the RBI to be resolved under the Code were referred to the NCLT.