The government should implement capacity building measures and ensure efficient and quick appointments of members at the National Company Law Tribunal (NCLT), the tribunal's former President, Justice (Retd) M.M. Kumar said on Thursday.
"NCLT is a specialised tribunal, it has Companies Act and IBC (Insolvency and Bankruptcy Code), it is not like High Court, a High Court judge has to deal with constitutional matters and has to decide a variety of cases," Kumar said while addressing an event.
These specialist tribunals are required to be very well equipped and should be in a position to dispose of more cases than a High Court judge, who disposes of about 2,000 cases in a year, he said while speaking at the National E- Summit on IBC and Valuation organised by industry body Assocham.
The number of liquidation cases is staggering but when one starts analysing, it is seen that a large number of liquidation cases are those which are coming from erstwhile SICA (Sick Industrial Companies Act) or very old cases transferred from the High Court.
"That number should not worry us," he added.
There are write-ups in newspapers and journals that cartels are operating, and professionals are not doing their job properly and all sorts of things are being said out in the open. That aspect that how it can be clubbed, needs to be seen, he opined.
Talking about the need to revamp the valuation system, Kumar said, "I think professional bodies IRP, RPs, CAs are doing a very good job, I think there needs to be some revamping of the valuation system.
"IBBI (Insolvency and Bankruptcy Board of India) made large number of attempts. Our law is very old in so far as in terms of valuation of intangible assets, non-financial assets, and contingent claims".
According to him, the government must act to protect entrepreneurs who have faced the Corporate Insolvency Resolution Process (CIRP).
"IBC has no doubt created financial discipline but it has also created a feeling of alienation that can be assuaged by the government by bringing a scheme to rehabilitate those who have been adversely affected," Kumar said.
