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Soon, Two More NCLT Benches: At Amaravati For AP, And Indore For MP Regions
Representative image. (Unsplash/Melinda Gimpel)
The Union government on 8 March (2019) approved the setting up of two additional benches of National Company Law Tribunal (NCLT) at Andhra Pradesh and Madhya Pradesh to fastrack the resolution process.
“This step has been taken keeping in view the increasing case load, especially under the Insolvency and Bankruptcy Code 2016, "said a government release. "The jurisdiction of the Bench at Amaravati will be the state of Andhra Pradesh and that of Indore will be the state of Madhya Pradesh."
Presently, there are NCLT benches established across the country with the principal bench in New Delhi. The three benches at Jaipur, Kochi and Cuttack were recently set up.
NCLT has been set up under the Companies Act, 2013, to provide an effective and time-bound adjudication mechanism to deal with insolvency and bankruptcy of corporate entities.
Death By Delay
While the resolution of bad loans through NCLT has led to significant improvement in recoveries, the delay in getting the cases through is still causing substantial losses. A report in The Hindu Business Line pegs the damages at Rs 25,000 crore in interest for over Rs 2 lakh crore loans from top 10 defaulters.
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