 "Over 655 cases decided under insolvency law, says NCLT President")
The NCLT has so far decided more than 655 cases under the Insolvency and Bankruptcy Code while all efforts are made to stick to the timelines, the tribunal's President Justice M M Kumar said on Thursday.
The Code, which provides for a market-determined and time-bound resolution of insolvency proceedings, became operational in December 2016.
A case is taken up for resolution under the Code only after getting clearance from the National Company Law Tribunal (NCLT) and subsequently, an insolvency professional is appointed.
The book titled 'Compendium on Insolvency and Bankruptcy Code 2016' and a website on the Code was launched by advisory firm Corporate Professionals.
While noting that there is some lack of knowledge and education about the Code, Kumar said sometimes there is lot of resistance from the management of an entity concerned to allow the insolvency professional to function.
Some corporate debtors have also tried to misuse provisions of the Code and the tribunal has discouraged it. "Adventurous people came before us and we were able to show them the right place," Kumar said.
Noting that insolvency professional is pivotal in the whole process, he said the emphasis should be to bring back the company to its operations and that can be done by them by finding out of the box formulae.
Among others, 12 cases of NPAs identified by the RBI to be resolved under the Code were referred to the NCLT.
Out of the 12, insolvency professionals have been appointed in 11 cases, Kumar noted.
According to him, the amount of NPAs have gone up to more than Rs 8 lakh crore.
"There are not many countries where you can have loans to pay loans. I think India is one of the eminent countries where banks can give loan to the entrepreneur to pay back the loan... People think that judges don't know anything... But we know quite a few things," he said.
Insolvency and Bankruptcy Board of India (IBBI) Chairperson M S Sahoo said the objective of the law is that to prevent insolvency if possible.
If it cannot be done, resolve it at the earliest opportunity and once triggered it has to be completed in 180 days, otherwise there are severe consequences, he added.
The Code is implemented by the IBBI.
The Code, which provides for a market-determined and time-bound resolution of insolvency proceedings, became operational in December 2016.
A case is taken up for resolution under the Code only after getting clearance from the National Company Law Tribunal (NCLT) and subsequently, an insolvency professional is appointed.
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"We have already decided at the NCLT more than 655 cases under the IBC. We have made all efforts to keep the time line," Kumar said here at an event to launch a book and a website on the Code.
The book titled 'Compendium on Insolvency and Bankruptcy Code 2016' and a website on the Code was launched by advisory firm Corporate Professionals.
While noting that there is some lack of knowledge and education about the Code, Kumar said sometimes there is lot of resistance from the management of an entity concerned to allow the insolvency professional to function.
Some corporate debtors have also tried to misuse provisions of the Code and the tribunal has discouraged it. "Adventurous people came before us and we were able to show them the right place," Kumar said.
Noting that insolvency professional is pivotal in the whole process, he said the emphasis should be to bring back the company to its operations and that can be done by them by finding out of the box formulae.
Among others, 12 cases of NPAs identified by the RBI to be resolved under the Code were referred to the NCLT.
Out of the 12, insolvency professionals have been appointed in 11 cases, Kumar noted.
According to him, the amount of NPAs have gone up to more than Rs 8 lakh crore.
"There are not many countries where you can have loans to pay loans. I think India is one of the eminent countries where banks can give loan to the entrepreneur to pay back the loan... People think that judges don't know anything... But we know quite a few things," he said.
Insolvency and Bankruptcy Board of India (IBBI) Chairperson M S Sahoo said the objective of the law is that to prevent insolvency if possible.
If it cannot be done, resolve it at the earliest opportunity and once triggered it has to be completed in 180 days, otherwise there are severe consequences, he added.
The Code is implemented by the IBBI.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)