‘Don’t let judicial delays fail IBC’

Clear pending resolution plans at once: SC to NCLT, NCLAT

The Supreme Court on Monday held that judicial delay should not be a reason leading to the failure of the Insolvency and Bankruptcy Code (IBC) regime like the way it did in the days before the Code came into existence. “We urge the National Company Law Tribunal (NCLT) and the National Company Appellate Law Tribunal (NCLAT) to be sensitive to the effect of such delays on the insolvency resolution process and be cognisant that adjournments hamper the efficacy of the judicial process,” a Bench of Justices D.Y. Chandrachud and M.R. Shah appealed. The judgment is significant considering that NCLT and NCLAT are among key tribunals across the country struggling with a burgeoning backlog only matched by their increasing vacancies.