Supreme Court criticizes NCLT delays undermining India's 2016 insolvency law
The Supreme Court isn't happy with how slowly the National Company Law Tribunal (NCLT) is handling insolvency cases (some have been stuck for up to four years).
The court warned that these delays could defeat the whole point of India's 2016 Insolvency and Bankruptcy Code, which was meant to speed things up for struggling companies.
NCLT bench holds 383 pending applications
Turns out, the NCLT principal bench has a huge backlog: 383 pending applications for approval of resolution plans are still waiting, with delays ranging from 48 days to 738 days.
The main issues? Not enough staff (they're working at more than half their full strength), limited infrastructure, and frequent changes in bench members leading to half-day sittings.
Now, the Supreme Court has asked the Insolvency and Bankruptcy Board of India and the NCLT principal bench at New Delhi to collect data on what's causing these holdups and report back.