{"id":42893,"date":"2024-05-04T12:06:51","date_gmt":"2024-05-04T12:06:51","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/05\/04\/nclt-registers-43pc-jump-in-debt-resolution-cases-ibbi\/"},"modified":"2024-05-04T12:06:51","modified_gmt":"2024-05-04T12:06:51","slug":"nclt-registers-43pc-jump-in-debt-resolution-cases-ibbi","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/05\/04\/nclt-registers-43pc-jump-in-debt-resolution-cases-ibbi\/","title":{"rendered":"NCLT registers 43pc jump in debt resolution cases: IBBI"},"content":{"rendered":"
\"NCLT<\/div>\n
Kolkata, Amid several bottlenecks, the Insolvency Bankruptcy<\/a> Board of India (IBBI) declared 2023-24 as a landmark year, with the National Company Law Tribunal achieving a significant 43 per cent increase in resolutions, jumping from 189 cases last year to 270 this year. The IBBI<\/a> is expected to submit a report to the government over the next 2-3 months for including “mediation” in the Insolvency and Bankruptcy Code (IBC), which is currently under discussion and scrutiny. <\/p>\n

The regulator is also working on prepackaged insolvency for large corporate cases, which is only allowed in MSME cases as of now. <\/p>\n

For the first time in a year, the number of outputs has increased from the number of inputs, reducing the pendency across India, said Sudhaker Shukla, an IBBI whole-time member, while addressing the CII organised 7th Insolvency and Bankruptcy Code conclave. <\/p>\n

He said that despite bottlenecks in the last seven years, resolution of 3.5 lakh crore was achieved, and 27,000 applications worth Rs 10 lakh crore were withdrawn, making the IBC a powerful tool for debt resolution<\/a> in the country. <\/p>\n

Shukla stated that the law has evolved over time and that the interventions to improve it have been remarkable. <\/p>\n

“In 2023-24, around 12 amendments and 86 interventions have been made in the IBBI within a single year. This portrays that we are responding to market requirements to bridge the gaps,” he said. He further added that a sectoral approach has been adopted to address unique problems for a speedy resolution, like in real estate. “We are trying to follow the sandbox approach. The recent amendments were made on real estate where project-wise resolution was made, keeping the allotted houses from liquidation was a big step forward in a sectoral approach,” Shukla said. <\/p>\n

Speaking about the demand for mediation and prepacks for insolvency for large accounts, Shukla said it was currently under scrutiny and in the next 2-3 months, it will be submitted to the government. <\/p>\n

He further said prepacks for large accounts were also under consideration as they aim for speedy resolution. <\/p>\n

Prepackaged insolvency involves negotiating and agreeing on a resolution plan between the debtor and its creditors before going into formal bankruptcy. <\/p>\n

P Santhosh, Managing Director of NARCL, the government-backed bad bank, asserted that a delay in resolution will deteriorate the quality of the asset, making revival difficult. <\/p>\n

“There are multiple factors contributing to this delay, and to avoid it, coordination with financial creditors is crucial. The concept of Prepack insolvency<\/a> is yet to be adopted. However, many practitioners have discussed that this is one of the tools that can be extended to larger corporate disputes. Initially, there could be a promoter-led resolution plan, which can be improved over time,” he said. <\/p>\n

B Sankar, the Deputy Managing Director (stressed assets) of State Bank of India, highlighted that the success of insolvency resolution depends on collaboration between creditors, distressed companies (often with suspended directors\/promoters), and insolvency professionals. <\/p>\n

The conclave participants from insolvency professionals enriched themselves from NCLT<\/a> Kolkata judicial members Rohit Kapoor, Balraj Joshi and Bidisha Banerjee who shared their inputs for speedy resolutions.<\/p>\n<\/div>\n


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Kolkata, Amid several bottlenecks, the Insolvency Bankruptcy Board of India (IBBI) declared 2023-24 as a landmark year, with the National Company Law Tribunal achieving a significant 43 per cent increase in resolutions, jumping from 189 cases last year to 270 this year. The IBBI is expected to submit a report to the government over the […]<\/p>\n","protected":false},"author":2,"featured_media":42894,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/img.etimg.com\/photo\/msid-109841070,imgsize-25116.cms","fifu_image_alt":"","footnotes":""},"categories":[602],"tags":[44278,8114,12496,44275,44276,44274,1550,17236,44277,13597,10100],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/42893"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=42893"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/42893\/revisions"}],"predecessor-version":[{"id":42895,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/42893\/revisions\/42895"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/42894"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=42893"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=42893"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=42893"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}