NEW DELHI: The government of India plans to set up eight special courts under the National Company Law Tribunal to handle rising number of cases under the insolvency law, according to a senior official.
In recent times, there have been a substantial increase in the number of cases under the Insolvency and Bankruptcy Code, which provides for market-determined resolution in a time-bound manner.
As many as 6,326 companies had filed cases under the Code with the NCLT till June end.
The Corporate Affairs Ministry has proposed setting up eight special courts under the NCLT to deal with the insolvency cases.
“These courts are proposed to be set up in Mumbai, Delhi, Chennai, Kolkata and Hyderabad. The proposal aims to reduce the mounting burden on the tribunal despite it is having 11 benches all over India,” Corporate Affairs Secretary Injeti Srinivas has said.
NCLT handles company law cases and merger and acquisitions, apart from insolvency and bankruptcy cases.
“A total of 9,073 cases are under consideration in NCLT as on January 31, 2018, which includes 1,630 cases of merger and amalgamations, 2,511 cases of insolvency and 4,932 cases under other sections of the Companies Act, 2013.
“Subsequently, the cases have been increasing i e 6,326 companies had filed cases in NCLT under the IBC till end of June, 2018,” he said.
Source: Press Trust of India