NEW DELHI: The National Company Law Tribunal’s (NCLT) infrastructure needs to be scaled up for timely resolution of debt recovery, the Economic Survey 2019 said.
The survey termed the Insolvency and Bankruptcy Code (IBC) as “one of the most important economic reforms of recent times designed to effectively deal with non-performing corporate debtors”.
“The government is actively considering measures to address delays and has created six additional posts of the judicial and technical members for NCLAT,” the survey which was tabled in Parliament by Finance and Corporate Affairs Minister Nirmala Sitharaman said.
“Setting up ‘Circuit Benches’ of National Company Law Appellate Tribunal (NCLAT) is under consideration.”
At present, there are 32 ‘Judicial Members’ and 17 ‘Technical Members’ of the NCLT in 20 benches located in major cities.
The survey pointed out that the ecosystem for insolvency and bankruptcy is “getting systematically built out” with recovery and resolution of significant amount of distressed assets.
“Till March 31, 2019, the Corporate Insolvency Resolution Process (CIRP) yielded a resolution of 94 cases which has resulted in the settlement of claims worth Rs 173,359 crore,” the survey said.
“These cases include six out of 12 large accounts – insolvency resolution in respect of which was initiated by banks, as per directions of the RBI in 2017.”