New Delhi [India], July 23 (ANI): Union Minister for Finance and Corporate Affairs Nirmala Sitharaman presented the Union Budget for 2024-2025 and highlighted the Modi Government’s third-term priorities, with a special focus on ensuring ‘ease of doing business’ and strengthening the Insolvency and Bankruptcy ecosystem.
The Finance Minister proposed that an Integrated Technology Platform be set up to improve outcomes under the Insolvency and Bankruptcy Code (IBC), thereby ensuring consistency, transparency, timely processing, and better oversight for all stakeholders.
Nirmala Sitharaman highlighted that IBC has resolved more than 1,000 companies, resulting in a direct recovery of over Rs 3.3 lakh crore to creditors. In addition, 28,000 cases involving over Rs 10 lakh crore have been disposed of, even before admission.
She further proposed that appropriate changes to the IBC, reforms and strengthening of the tribunal and appellate tribunals will be initiated to speed up the insolvency resolution.
The Union Minister also proposed the establishment of additional tribunals out of which, some will be notified to decide cases exclusively under the Companies Act.
On the issue, Samir Sheth, Partner & Head, Deal Advisory Services, BDO India said, “One of the hindrances to the success of IBC was the delays from the judiciary system. Setting up additional tribunals to deal with IBC cases is a welcome step that will expedite the resolution process. While the details are yet to be released, an integrated technology platform will also help in the timely dissemination of information and bring in efficiencies in the IBC process”
Ramesh K. Vaidyanathan, Managing Partner, BTG Advaya on the proposed amendments to the Insolvency and Bankruptcy Code and the decision to add more tribunals of the NCLT and strengthening of the NCLAT said, “This will help to improve recovery of stressed assets. The proposed integrated platform is a welcome move as well. The integrated technology platform will also bring accountability to the entire process and improve speed.”
“The decision to earmark some of the tribunals exclusively to cases under the company’s law is to be welcomed. Needless to add, a lot will depend on ensuring that vacancies are filled up faster and competent members are appointed, an aspect that has weighed the system in the recent past,” added Ramesh K. Vaidyanathan. (ANI)
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