Specialised NCLT Benches & Tech Solutions: A Road to Faster Insolvency Resolutions

A study by the Indian Institute of Insolvency Professionals of ICAI suggests setting up specialised National Company Law Tribunal (NCLT) benches and adopting integrated case management software to accelerate resolutions under the Insolvency and Bankruptcy Code (IBC). Other recommendations include extending pre-packaged insolvency mechanisms to larger corporate entities.

A recent study advocates the establishment of specialised NCLT benches and the use of integrated case management software to expedite insolvency cases in India.

The Insolvency and Bankruptcy Code (IBC), designed for the timely resolution of stressed assets, is facing delays due to multiple factors.

The Indian Institute of Insolvency Professionals of ICAI (IIIPI) has proposed various measures, including the formation of specialised NCLT benches to focus on critical matters and the implementation of a faceless, paperless technological environment for stakeholders' interactions.

Additionally, the study recommends extending the pre-packaged insolvency mechanism beyond MSMEs to larger corporations, potentially enhancing the efficiency of insolvency resolutions.

(With inputs from agencies.)