ICRA also highlighted the limited success of the pre-packaged insolvency process for MSMEs and stressed the need for stronger NCLT infrastructure, additional tribunal members and quicker disposal of legacy cases to improve recoveries and reduce resolution timelines.
Rating agency Icra on Wednesday pitched for a separate framework for small-ticket insolvency cases before they reach the National Company Law Tribunal (NCLT), saying such a mechanism would reduce pressure on the tribunal and help expedite admissions for larger accounts.
“Icra believes that there is a necessity for a separate framework for small ticket-size cases before approaching the NCLT to reduce the burden on the benches and thereby…