Quick Summary
NCLAT Chairperson exhorts NCLAT NCLT members to stick to time limits for cutting delays in insolvency cases Every delay may have 100 good explanations, but the fact still remains that there is a delay, said Justice S. J. Mukhopadhaya, Chairperson, NCLAT. He was speaking here today at the colloquium on Judicial Sensitisation on Insolvency Law and Associated Best Practices. Justice Mukhopadhaya raised serious concerns with regard to the constant delays in insolvency proceedings and said tha
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
2 Years PLAN
3499
(Excl. of GST ₹629)
BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience. 07941056694
FAQ :
The main concern raised is the constant delays in insolvency proceedings and the need for NCLAT and NCLT members to cut the time period for these proceedings.
He wants NCLT members to admit or dismiss cases adhering to the prescribed time limits, focusing on the subject matter at hand as there are only limited grounds for argument at the admission stage.
Yes, the Chairperson implied that tribunals are equally obligated to pass reasoned orders within the limitation period, stating, 'If a party comes (to the tribunal) within limitation, we must also pass a reasoned order within limitation'.
He emphasised that the highest bid is not always the best in case of insolvency and therefore requires careful consideration.
The six envisaged exits include pre-admission settlement, post-admission settlement before Committee of Creditors (CoC) constitution, settlement after CoC constitution using Section 12A, a Resolution Plan, liquidation followed by an outright sale of the company, or liquidation after an order is passed as per Section 230 of the Companies Act.
CAclubindia
