The Reserve Bank of India’s (RBI’s) direction to banks to commence insolvency proceedings against 12 big-ticket corporate defaulters (with a combined value of Rs 1,75,000 crore in non-performing assets) has raised concerns over the ability of the National Company Law Tribunal (NCLT) to begin the recovery process in the light of the existing winding-up cases pending against some of these companies.
The issue came to light after Union Bank of India’s recent application to initiate insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code 2016 (the Code) against Era Infra Engineering, one of the 12 companies shortlisted by