Govt not planning to amend bankruptcy and insolvency code for quicker resolution of cases

Govt not planning to amend bankruptcy and insolvency code for quicker resolution of cases

The NCLT had been hit by a shortage of members, and in August, it had stated that only urgent matters will be taken up because of the lack of members.

FPJ Web DeskUpdated: Monday, December 12, 2022, 09:29 PM IST
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Corporate affairs ministry has stated that there are no proposed amendments to the the Insolvency and Bankruptcy Code, 2016 to reduce procedural lags. The government is doing the neeful, which includes regular appointment of members and providing physical infrastructure, so that National Company Law Tribunal can dispose of cases in a timely fashion.

The NCLT handles Insolvency and Bankruptcy related cases under the companies law. The ministry also mentioned that 20 new members have been appointed in NCLT in 2021, and appointments of 15 new members in 2022 have been approved.

The NCLT had been hit by a shortage of members, and in August, it had stated that only urgent matters will be taken up because of the lack of members.

Retirement of 15 members had pushed the strength of the tribunal down by 50% July. But 15 judicial and technical members had bene appointed in November to restore operational capacity.

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