3.5-lakh crore of debt stuck
New Delhi, May 6:
With the Insolvency and Bankruptcy Code inching towards reality, early redress of almost 75,000 cases involving debt of an estimated 3.5-lakh crore is what the government and stakeholders expect.
While the Debt Recovery Tribunals (DRT) will resolve individual bankruptcy cases, the National Company Law Tribunal will work on corporate insolvency.
The reasons for the pile-up of cases varied from legal lacunae to insufficient technical expertise in dealing with such cases. Labour and infrastructure issues also played a big role in hindering resolution. The time taken to close such cases was another major hindrance.
Time factor
The new Code, once legislated, will expedite such cas…
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