Mediation as a dispute resolution mechanism makes sense given that over 60% of the applications for initiating CIRP are settled before NCLT admits the plea.
Panel has proposed establishment of dedicated and specialised NCLT-annexed insolvency mediation cell with independent secretariat to administer, oversee and manage conduct of insolvency mediations under Code
Deputy-governor Swaminathan J added there should be a separate resolution framework for financial service providers such as banks, non-banking finance companies (NBFCs) and insurance firms
During a meeting with managing directors and CEOs of public sector banks (PSBs), financial services secretary Vivek Joshi asked them to review the top 20 cases monthly for their resolution
Last month, the Chennai bench of the National Company Law Appellate Tribunal (NCLAT) stayed the order of the NCLT to initiate insolvency proceedings against Coffee Day Global Ltd (CDGL), which owns and operates the popular Cafe Coffee Day outlets. CDGL is the subsidiary of CDEL