NCLT organized Colloquium on “NCLT- The Road Ahead”
- MCA Secretary commends NCLT for disposing off about 62,000 cases out of about 83,000 cases filed before it.
- IBBI Chairperson calls for standardization to fast track resolution of cases.
- Colloquium will address effective and judicatious process and resolution.
National Company Law Tribunal (NCLT)
- The Central Government constituted NCLT under section 408 of the Companies Act, 2013.
- In the first phase the Ministry of Corporate Affairs setup 11 Benches, one Principal Bench at New Delhi and ten Benches in various locations in India.
- As on today, there are 15 which are manned by 48 Members who hear cases related to the Companies Act and the Insolvency and Bankruptcy Code 2016.
- It is a quasi-judicial authority incorporated for dealing with corporate disputes under the Companies Act.
- It is the adjudicating authority for insolvency resolution process of companies and limited liability partnerships under the Insolvency and Bankruptcy Code, 2016.
- Out of a total of 83838 cases filed before NCLT, 62506 (75%) cases have been disposed off by the Tribunal as on Feb 2022.
- The cases disposed off comprises 39446 cases under Companies Act and 23060 cases under Insolvency Bankruptcy Code, 2016.
- Even during Covid-19, NCLT kept its doors open and decided a large number of cases.
NCLT and Economic growth
- Industry and commerce are crucial in the nation’s economy & governed by Company Law besides other laws.
- Government has come out with Insolvency & Bankruptcy Code (IBC) code to resolve corporate issues to enable corporates of India to compete with the world.
- NCLT is the guardian of the corporate law and each of the Members has a role to play in the economic growth of the country.
- NCLT is an institution of pride and it has led to faster resolution of corporate disputes under the Company Act and the IBC.
Achievements of NCLT
- Rescue of creditors,
- Providing an orderly exit for companies under distress,
- Helping creditors realize the value of their assets,
- Behavioral change in both Creditors and Debtors.
Effectiveness of IBC
- The IBC has been key in releasing entrepreneurship from honest business failures, which is important as we have the 3rd largest startup ecosystem in the world.
- IBC Code has seen a roller coaster ride with six amendments have been made in the main legislation so far.
- To enhance the effectiveness of IBC, introduction of a cross border insolvency framework in the IBC is being considered.
- Leveraging technology and filling up posts are two key factors in increasing the speed.