In order to handle the increasing numbers of insolvency cases in the country, the Central Government has planned to set up eight special courts under the National Company Law Tribunal. The proposal has been put forward by the ministry of corporate affairs in view of fast-track dealing of such matters which are harassing many home buyers.
According to a senior Govt. official, in recent times, there has 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. Till June end, as many as 6,326 companies had filed cases under the Code.
Corporate Affairs Secretary Injeti Srinivas said, “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,”
He further said that 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 the end of June 2018,” Srinivas added.
The Central Government has constituted National Company Law Tribunal (NCLT) under section 408 of the Companies Act, 2013 (18 of 2013) w.e.f. 01st June 2016. In the first phase, the Corporate Ministry has set up eleven benches in the country. These benches are headed by the President and 16 Judicial Members and 09 Technical Members at different locations. Apart from insolvency and bankruptcy cases, NCLT also handles company law cases and merger and acquisitions.