Structural Weakness in the Insolvency and Bankruptcy Code (IBC)
The Ministry of Corporate Affairs seeks Cabinet approval for 50 additional National Company Law Tribunal (NCLT) courts and two more National Company Law Appellate Tribunal (NCLAT) Benches. This move highlights a longstanding structural weakness affecting the effective functioning of the Insolvency and Bankruptcy Code (IBC).
Capacity Mismatch
- The NCLT, initially established to administer company law, is tasked with adjudicating insolvency cases without adequate expansion in capacity or infrastructure.
- This mismatch results in persistent delays in insolvency resolution processes.
Current Delays and Statistics
- By September, 8,659 corporate insolvency resolution…