Various benches of the National Company Law Tribunal (NCLT) courts are admitting fewer cases brought forward by trade creditors. The NCLT was constituted in June 2016 to hear proceeding under the Insolvency and Bankruptcy Code (IBC).
Through insolvency proceeding, the government and the RBI aim to recover about Rs 8 lakh crores in bad debts and direct the flow of credits to more productive sectors of the economy.
Since the beginning of the year, operational creditors filed 184 cases or 57% of the total in different NCLTs, according to data provided by a financial consultant firm. But NCLT courts admitted only 67 cases. The rest were either dismissed or withdrawn or were settled outside the co…
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