The Parliamentary Standing Committee on Finance calls for a review of the Insolvency and Bankruptcy Code (IBC) to address implementation challenges, emphasizing the need to uphold its intended purpose. Highlighting low actual recoveries and significant delays in resolution processes, the committee recommends enhancing the strength of the National Company Law Tribunal (NCLT) to address case backlog. Additionally, it expresses concerns about the effectiveness of resolution professionals (RPs) in managing complex cases, urging a reevaluation of RP regulations.
Undecided claims are those claims which were contingent due to their being pending before a court or an arbitral tribunal at the time of passing of the resolution plan.
"Such an order only reflects the competence of the persons who are manning such an important Tribunal. The Order shows the lack of basic understanding of the law," the Kerala High Court added.
This being an election year, the Budget is likely to be a vote on account. It will probably be focused on essential government expenditures. Only after the elections are over and the new government takes over, will the full budget be placed.
The Kolkata bench of the National Company Law Tribunal approved a Rs 301 crore resolution plan against Rs 816 crore admitted claims from creditors, employees, and trade creditors.