Time period for insolvency proceedings need to be reduced: NCLAT chairperson

National Company Law Appellate Tribunal (NCLAT) Chairperson Justice S J Mukhopadhaya on Saturday said members of the tribunal as well as the NCLT need to reduce time taken for insolvency proceedings.

He was speaking at a colloquium on 'Judicial Sensitisation on Insolvency Law and Associated Best Practices' here.

Members of the NCLAT and the NCLT (National Company Law Tribunal) must cut the time period of insolvency proceedings and focus on quicker disposal of cases, Mukhopadhaya was quoted as saying in a release.

Mukhopadhaya emphasised that there are only limited grounds to argue at the stage of admission and that the members of the NCLT should admit or dismiss the cases adhering to the prescribed time limits, as per the release.

A case is admitted under the Insolvency and Bankruptcy Code (IBC) only after approval from the NCLT.

The release was issued by the corporate affairs ministry.