Chinmaya IAS Academy – Current Affairs Chinmaya IAS Academy – Current Affairs
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Tasked with helping recover unpaid corporate loans, the National Company Law Tribunal (NCLT) has helped resolve insolvency and bankruptcy proceedings involving more than Rs. 80,000 crore in 2018. The kitty is expected to swell beyond Rs. 1 lakh crore in 2019 with several big-ticket default cases pending.
Plans are afoot to further strengthen the NCLT by increasing the number of judges and benches, and providng adequate infrastructure to fast-track the process, according to government officials. The new year will not only test the mettle of the Insolvency and Bankruptcy Code (IBC), but also of the NCLT and its appellate body NCLAT, as several high-profile cases need to be resolved — Essar Steel (involving over Rs. 80,000 crore) and Bhushan Power & Steel (about Rs. 45,000 crore due to its lenders) are just a few, experts said. In 2018, more than Rs. 80,000 crore was recovered from various corporate debtors, who had defaulted on payments, under the IBC through various insolvency proceedings at the NCLT and the NCLAT, Corporate Affairs Secretary Injeti Srinivas said.
As per estimates, the IBC has helped address stressed assets worth Rs. 3 lakh crore — directly or indirectly — since the new law came into force in December 2016. “The estimated amount includes recoveries made through resolution plan and cases settled before admission by the NCLT,” Mr. Srinivas added.
