Insolvency: ‘Prior to admission’ delays dragging down efficiency of IBC
January 27, 2021
Promise of time-bound resolution a distant dream for stakehokders, says Alvarez & Marsal India
India would do well to focus on capacity building at the National Company Law Tribunals (NCLT) and address the inordinate delays at the admission stage for insolvency applications if more efficiency is to be brought into the implementation of the nearly five-year-old insolvency and bankruptcy code (IBC).
These are among the several recommendations that consultancy firm Alvarez & Marsal India put together in a new paper, ‘The Next Phase of the IBC Must Focus on Efficiency’.
It has highlighted that the promise of time-bound resolution has been a distant dream for stakeholders. Of the 277 cases resolved in NCLT, as of September 2020, the average time for resolution, including litigation time, has been 440 days. If one includes the time taken at the admission stage and post approval of resoluti