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.

Also read: ArcelorMittal Taking Over Essar Steel: How Due Diligence By Courts Brought About The Biggest Resolution Under IBC Yet

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement