FINANCIAL NEWS: NCLT EXPECTED TO WITNESS SURGE IN INSOLVENCY CASES

Ritish Kr. Upadhyay · 2021-03-20T11:59:26.748Z

The National Company Law Tribunal (NCLT) may see a surge in cases as a year-long suspension on the Insolvency and Bankruptcy Code is coming to an end next Wednesday. The Ministry of Corporate Affairs will unlikely extend the one-off relaxation next week with India fast regaining business normalcy and ranking among the top five globally in vaccinating its citizens, said multiple sources familiar with the matter. "Suspension of initiating Corporate Insolvency Resolution Process on defaults post 25th March 2020 has served its objective and may not be extended further,” said Anil Goel, founder and chairman, AAA Insolvency Professionals. “The Insolvency and Bankruptcy Code is one of the stellar pieces of reforms of the current government, and it should not remain suspended for longer,” he said. The Ministry of Corporate Affairs did not reply to ET’s query until the publication of this report. A six-month suspension was first introduced in June for missing repayments or debt defaults arising in the aftermath of the virus-induced lockdown on March 25, 2020. It was supposed to end on September 25 but extended up to December 25. Finally, the recess was further extended by another three months.

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