MCA planning new portal to streamline IBC cases, boost transparency

An integrated portal that would bring together all the pillars of the Insolvency and Bankruptcy Code (IBC) for a seamless flow of case information is in the works at the Ministry of Corporate Affairs, a senior official told Business Standard. 

“We would have a single source of truth. All case-wise information will flow through this portal. It would also help us in data analytics to improve policymaking,” the senior official said. 

The concept note for the portal is ready and MCA will start the process of engaging a consultant to take this forward soon.

The portal would provide a platform to the Insolvency and Bankruptcy Board of India (IBBI), the National Company Law Tribunal (NCLT), National e-Governance Services Limited along with Resolution professionals and information utility. 

For instance, the resolution professionals would be able to access the MCA data about the company's part of the insolvency process using the Application Programming Interface. 

The IBBI would also be able to keep track of the happenings in the NCLT through this portal.

The data of the two entities would not be mismatched as the information would be fed in one place. 

Currently, IBBI through its quarterly newsletters provides information on a few key aspects such as, cases admitted, and closed through approval, liquidation, settlement, or withdrawal. 

“Such a system could dramatically reduce the scope for errors and misinformation, which are often a byproduct of fragmented data handling. In the fast-paced, high-stakes world of insolvency resolutions, where every day counts, the speed and accuracy of the information can significantly impact the recovery rates and the overall health of the financial system,” said Sonam Chandwani, managing partner, of KS Legal and Associates.

The portal, the official said, would include features for SMS alerts and provide template-based judgments for NCLT to save time and use artificial intelligence learning for making the judgments. 

A lot of such information if made available online can be of use not just for commercial but also academic purposes, experts said. 

They feel that the Code may undergo a revolution as a result of the incorporation of digital tools and AI technology, which would boost the efficacy, efficiency and transparency of these procedures. 

A study by PwC and Assocham said: “Interested parties can get real-time updates on current insolvency cases via web portals. As stakeholders are kept informed about case developments, hearings and conclusions, this transparency creates more faith in the process.” 

Digital networks, the study said would allow the public to observe processes, increasing accountability and lowering the possibility of fraudulent practices. 

The IBC21 would have all the information from the resolution professionals right from the time they get the consent for their appointment till the final plan is implemented. 

How it helps
 

• The portal would provide a platform to the Ibbi, NCLT, National E-Governance Services along with resolution professionals 
• The Ibbi would be able to keep track of  happenings at the NCLT through the portal
• The portal would have features for SMS alerts and provide template-based judgments for NCLT to save time