National Company Law Tribunal (NCLT) Organizes National Level Colloquium On The Subject 'NCLT- The Road Ahead'

Retd. Chief Justice Ramalingam Sudhakar (President, NCLT), Shri Rajesh Verma( Secretary, Ministry of Corporate Affairs) and Shri Ravi Mital (Chairman, Indian Bankruptcy Board of India (IBBI)) inaugurated the colloquium. Members of the Tribunal, both Judicial and Technical, representing 15 Benches across India also participated in the colloquium.

Chief Justice (Retd.) Ramalingam Sudhakar , in his address as the chief guest, said that India is envisioning a multi-trillion dollar economy. Industry and commerce, crucial in the nation's economy, are governed by Company Law besides other laws. He has further stated that the Government has come out with [Insolvency & Bankruptcy Code (IBC)] code to resolve corporate issues to enable corporates of India to compete with the world. NCLT is the guardian of the corporate law and each of the Members has a role to play in the economic growth of the country.

He concluded his address stating that one aspect for early resolution is the development of Artificial Intelligence technology for speedier dispensing of justice. He also suggested that AI can be used in case resolution, especially in admission of cases.

Shri Rajesh Verma,Secretary MCA, stated that NCLT is an institution of pride and it has led to faster resolution of corporate disputes under the Company Act and the IBC. Praising NCLT's performance during COVID-19, he said that NCLT disposed of about 62,000 cases out of about 83,000 cases filed before it, which include rescue of creditors, providing an orderly exit for companies under distress, helping creditors realize the value of their assets and behavioral change in both Creditors and Debtors. The IBC has been key in releasing entrepreneurship from honest business failures, which is important as we have the 3^rd largest startup ecosystem in the world, he said.

Shri Verma emphasized that the IBC Code has seen a roller coaster ride with six amendments have been made in the main legislation so far. He further stated that many provisions of IBC have come out unscathed when challenged (in the higher courts) and the Supreme Court of India had settled the jurisprudence on various aspects of this new law at an unprecedented pace and passion. He added that to enhance the effectiveness of IBC, introduction of a cross border insolvency framework in the IBC is being considered. Leveraging technology and filling up posts are two key factors in increasing the speed, he said.

Shri Mital, Chairman, IBBI, while addressing stated that there are two corner stones of the IBC viz timelines in process and the control being given to creditors as against Debtors. He stated that with more standardization, the speed of resolution of cases can be increased. He said that IBBI is always ready to collaborate with NCLT in simplification of the process of resolution.

Inaugural session was followed by the technical session, where Shri Sudhakar Shukla, Whole Time Member, IBBI and Prof. Charan Singh, CEO, EGROW Foundation, also participated. Members of the Tribunal covered other areas such as Admission of Petitions u/s 7 and 9 IBC, Oppression & Mismanagement, Avoidance Transactions, Insolvency & Voluntary Liquidation- Section 10 and Section 59, IBC, and Resolution Plan Approval etc.

Read The Press Statement Here