Government to Revamp Insolvency Process with Integrated Tech Platform

The government plans to overhaul the insolvency process by setting up an integrated technology platform and increasing the number of benches at the National Company Law Tribunal (NCLT). These changes aim to improve outcomes, ensure transparency, and speed up the resolution process under the Insolvency and Bankruptcy Code (IBC).

The government is set to revamp the insolvency process with the introduction of an integrated technology platform for stakeholders, while also increasing the number of benches at the National Company Law Tribunal (NCLT). Finance Minister Nirmala Sitharaman revealed these plans while presenting the 2024-25 Budget on Tuesday, highlighting the upcoming changes to the Insolvency and Bankruptcy Code (IBC).

Established in 2016, the IBC has been amended six times and focuses on providing market-linked and time-bound resolution of stressed assets. The proposed Integrated Technology Platform aims to enhance outcomes, ensure transparency, and expedite processing for all involved parties.

With over 1,000 companies resolved and direct recovery amounting to Rs 3.3 lakh crore, the IBC has also seen 28,000 cases involving over Rs 10 lakh crore disposed of prior to admission. Additional efforts to bolster tribunals and appellate tribunals aim at accelerating insolvency resolutions, with new tribunals established for exclusive case handling under the Companies Act. The move is part of the government's broader strategy to strengthen the insolvency ecosystem and speed up corporate exits.

(With inputs from agencies.)