New Delhi, National Company Law Tribunal (NCLT) President Justice Anupinder Singh Grewal on Thursday pitched for increasing the financial threshold for admitting cases under the insolvency law.
He was speaking at a function in the national capital to mark the tenth annual day of the Insolvency and Bankruptcy Board of India (IBBI).
NCLT and IBBI are key institutions in implementing the Insolvency and Bankruptcy Code (IBC).
In his speech, Grewal said he feels that the admission threshold should be revised upwards since many of the cases that are coming up are not really going to provide insolvency resolution, but they want recovery of dues.
According to him, the threshold could be increased to Rs 5 crore.
The threshold was increased to Rs 1 crore in 2020.
Grewal also suggested reforms such as use of mediation and sector-specific carveouts.
Further, he highlighted the steps being taken to reduce delays in disposal of cases and recent improvements in speedier disposal of resolution plans.
At the function, Minister of State for Corporate Affairs Harsh Malhotra said IBC has strengthened credit discipline, improved the recovery climate and contributed to the ease of doing business in the country.
According to IBBI Chairperson Jayanti Prasad, IBC has enabled substantial recoveries for creditors, rescued viable businesses across sectors, and brought about a lasting change in debtor-creditor behaviour. PTI
