Government Enhances Insolvency Resolution with New NCLT Tribunals

The government will establish more NCLT tribunals and an integrated technology platform to enhance the recovery of stressed assets. These measures, announced by Finance Minister Nirmala Sitharaman during the Union Budget 2024-25 presentation, aim to streamline the Insolvency & Bankruptcy Code (IBC) process and strengthen related tribunals.

The government announced the addition of new tribunals under the National Company Law Tribunal (NCLT) to expedite the recovery of stressed assets. Finance Minister Nirmala Sitharaman revealed this while presenting the Union Budget for 2024-25, emphasizing the move as a step towards enhancing the Insolvency & Bankruptcy Code (IBC) framework.

Additionally, the government plans to set up an integrated technology platform to improve the IBC outcomes, which includes ensuring transparency, faster processing, and better oversight. Sitharaman stated that these initiatives are aimed at strengthening both existing and new tribunals.

The Budget also proposes streamlining voluntary closure processes for limited liability partnerships (LLPs) through accelerated corporate exit services. Facing a resource crunch, tribunals like the NCLT and its appellate counterpart NCLAT will also receive additional support.

(With inputs from agencies.)