You are here: Home » Economy & Policy » News
Business Standard

IBC's objective not to emphasise on liquidation: NCLT

Stating that there are jobs and livelihood at stake, Kumar said the idea is not to lay stress on liquidation of the companies facing insolvency proceedings

Press Trust of India  |  New Delhi 

IBC's objective not to emphasise on liquidation: NCLT

(NCLT) president on Wednesday said the objective of the Insolvency and Bankruptcy Code (IBC) is to find appropriate solution for stressed assets and liquidation would be the last resort.

Stating that there are jobs and livelihood at stake, Kumar said the idea is not to lay stress on liquidation of the companies facing insolvency proceedings.

On efforts of the and (IBBI) for putting in place mechanisms for proper resolution in a short time span, he said the role of resolution professionals in finding suitable and amiable solutions for stressed companies is commendable.

"The sole objective of the Insolvency and Bankruptcy Code 2016 is to find solutions for stressed assets arisen out of non-performing assets with best of intent as so many things are involved in the process and liquidation perforce would be the last way out which the tribunal would avoid optimally," he said.

He, however, said bringing about changes in the code is not the mandate of the as its job is to enforce the code.

"Bringing about changes in the Code is entirely something which stays in the domain of Parliament," Kumar said at an event held by PHD Chamber of Commerce and Industry here.

First Published: Wed, January 03 2018. 22:17 IST
RECOMMENDED FOR YOU