Team Blitz India
NEW DELHI: In one of the biggest moves to improve the functioning of the National Company Law Tribunal (NCLT), the Government is discussing a massive expansion, which could see an addition of up to 100 members. While the current sanctioned strength is 63, typically there are always vacancies with the government often being slow in appointing fresh members.
The idea is not just to speed up insolvency resolution, which has slowed down considerably in recent years, but also seek faster disposal of company law matters that are also heard by NCLT benches, a senior official told TOI.
The Insolvency and Bankruptcy Board of India (IBBI) has been closely monitoring the time being taken and the process and has discussed multiple options with the government and other stakeholders to improve the functioning of NCLT.
Latest data available with IBBI showed that in 80% of the cases, the insolvency resolution process has exceeded the 180 days deadline and 67% cases are going beyond 270 days, as an extension of 90 days is provided for under the Insolvency & Bankruptcy Code. A paper circulated by IBBI a few months ago had pointed to massive delays in the admission stage itself.
