Call for Reforms in India's Insolvency Law Amid Admission Delays

NCLT President Ramalingam Sudhakar highlighted the need for more manpower to address delays in admitting insolvency cases, despite the Tribunal's limitations. As banks and financial institutions present extensive documentation, Sudhakar emphasized that legal interpretation takes time. Concerns were also raised by India's G20 Sherpa Amitabh Kant and Chief Economic Advisor V Anantha Nageswaran about improving the Insolvency and Bankruptcy Code (IBC) for economic stability and growth.

On Tuesday, NCLT President Chief Justice (Retd) Ramalingam Sudhakar addressed concerns regarding delays in admitting insolvency cases, stressing the necessity for more manpower. He acknowledged the limitations but assured that success can still be achieved despite them.

The National Company Law Tribunal (NCLT) plays a crucial role in implementing the Insolvency and Bankruptcy Code (IBC), with cases involving extensive documentation and complicated agreements. Sudhakar highlighted that legal interpretation requires time, and more resources are needed to expedite the process.

At the eighth foundation day of the Insolvency and Bankruptcy Board of India (IBBI), India's G20 Sherpa Amitabh Kant and Chief Economic Advisor V Anantha Nageswaran emphasized the need for continuous improvements in the IBC. Kant suggested reforms to speed up case admissions and called for a model law on cross-border insolvency, while Nageswaran underlined the importance of a robust bankruptcy regime for economic growth and market confidence.

(With inputs from agencies.)