Reflecting on two years of bringing the legislation into effect, Jaitley also said that the legislation has changed the debtor-creditor relationship for the betterNew Delhi: While noting that the early harvest through the Insolvency and Bankruptcy Code (IBC) has been extremely satisfactory, Finance Minister Arun Jaitley said that creditors are on track to recover Rs 70,000 crores from a bunch of big cases in this financial year. Reflecting on two years of bringing the legislation into effect, Jaitley also said that the legislation has changed the debtor-creditor relationship for the better. “The creditor no longer chases the debtor. In fact, it is otherwise,” he said.
66 cases yielded Rs 80,000 crores
So far, 1,322 cases have been admitted by the National Company Law Tribunal (NCLT). At least 4,452 cases have been disposed at pre-admission stage and 66 have been resolved after adjudication. Another 260 cases have been ordered for liquidation. In 66 resolution cases, the realisation by creditors was around Rs 80,000 crores. As per the NCLT database, in 4,452 cases disposed at pre-admission stage, the amount apparently settled was around Rs 2.02 lakh crores.
The 12 big cases, including Bhushan Power and Steel Ltd and Essar Steel India Ltd, are in advanced stages of resolution and are likely to be resolved in this financial year in which realisation is expected to be around Rs 70,000 crores.
‘NCLT capacity will be enhanced’
“The functioning of NCLT and the Tribunal has led to a large number of cases being filed. The NCLT is over-crowded, its capacity is now being further enhanced. Realising the urgency, the Supreme Court has pronounced several judgements expeditiously, laying down the Law on the new Legislative provisions. The law declared by the Supreme Court will go a long way in interpretation and clarifying the ambiguity, if any. This will expedite the process further in coming days,” Jaitley said.
He also added that the NCLT has become a trusted forum of high credibility and those who drive the companies to insolvency, exit from management. “The selection of new management has been an honest and transparent process. There has been no political or governmental interference in the cases,” said the minister.
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