Finance Minister Nirmala Sitaraman, in her budget speech proposed an amendment to the Insolvency and Bankruptcy Code (IBC), 2016 for better outcomes of insolvency cases filed against companies.
In order to unclog the National Company Law Tribunal (NCLT), which has been facing criticism over delays. These new benches will exclusively hear cases filed under the companies act, 2013.
Government has also announced the introduction of an integrated technology platform for the IBC. FM said that over Rs. 3.3 lakh crore has been recovered via IBC and over 28000 cases have been disposed of so far. The NCLT is tasked with hearing cases filed under both IBC and companies act, which results in large pendency of cases. Thus, increasing the benches and having exclusive benches for company law cases are expected to reduce the pendency.
