Litigation hurdles abound for RBI-recommended insolvency cases at NCLT

There have been a few strong bids for some of the biggest stressed assets: Bhushan Steel, Bhushan Power & Steel, and Electrosteel Steels

The cases of insolvent firms on the Reserve Bank of India’s (RBI’s) second list are being referred to the National Company Law Tribunal (NCLT), but the cases of the first 12 have become entangled in complicated litigation.

The 270-day moratorium period for most of these cases will end in April.

“It is not surprising that so many of these cases are ending up in courts,” said Sumant Batra, managing partner at Kesar Dass B Associates. “The insolvency law is a principle-based law, not everything can be answered by it.” 

There have been a few strong bids for some of the