IIIPI Suggests Dedicated NCLT Benches To Speed Up Insolvency Process

Setting up specialised National Company Law Tribunal benches and adopting an integrated case management software can help in faster resolution of cases under the insolvency law, according to a study.

The Insolvency and Bankruptcy Code provides for a time-bound and market-linked resolution of stressed assets. Of late, many IBC cases are getting delayed due to various factors.

In its study, Indian Institute of Insolvency Professionals of the Institute of Chartered Accountants of India has suggested various measures that can help in faster insolvency resolution.

Specialised benches of the NCLT can be constituted from time to time to bring extra focus on matters like resolution plans and avoidance transactions, IIIPI said in a release.

Another suggestion is to have an integrated case management software allowing various stakeholders to interact in a faceless and paperless technological environment.

Among others, the institute has said that pre-packaged insolvency mechanism, currently available for Micro, Small & Medium Enterprises, can be extended to the larger corporate segment.

IIIPI is promoted by the ICAI.