The Parliamentary Standing Committee on Finance has called out the Ministry of Corporate Affairs on persistent vacancies in National Company Law Tribunals (NCLTs) leading to delays in corporate insolvency under the Insolvency and Bankruptcy Code (IBC). The committee has also recommended that the IBC be amended to prevent frivolous litigation and non-adherence to deadlines under the IBC that can lead to value destruction.
The committee recommended that the IBC strictly prohibit the submission for resolution plans after the deadline for plans and that recoveries under the IBC be measured against an international benchmark.
Why are vacancies in the NCLT a major issue?
The combined strength of the current NCLT benches around the country is …
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