Over 250 insolvency cases settled

Banks have to examine the profitability of businesses to which loans are being granted

The Insolvency and Bankruptcy Code (IBC) is beginning to show its effect on defauting borrowers who are preferring amicable resolution with creditors to facing legal proceedings.
 
Till date, over 25O cases have been settled under IBC by the Mumbai bench of the National Company Law Tribunal (NCLT) even before admission stage, according to Mukul Shrawat, judicial member, NCLT, in Mumbai.
 
The positive effect of IBC is being felt. The message is quite clear to borrowers — if they have taken debt, it has to be repaid. Many have preferred settlement with creditors even before admission of cases at