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Insolvency regulator working to bring mediation in insolvency cases

A source privy to IBBI's discussion said mediation might address the issue of courts delaying the insolvency process.

IBBI
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A source privy to IBBI’s discussion said many creditors are suffering because of delays in insolvency cases.

Bhavini Mishra New Delhi
India’s regulator for insolvency proceedings is considering mediation to resolve cases and will publish a discussion paper for its proposal.

There were 1,852 insolvency cases as of March 2022, according to the Insolvency and Bankruptcy Board of India (IBBI). A source privy to IBBI’s discussion said mediation might address the issue of courts delaying the insolvency process. “The company law tribunals are working with half their capacity. The institution has a lot of cases on its plate and not enough manpower,” said the source.

Separately, a Bill on mediation is before India’s Parliament. “Insolvency is not an exception under this

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First Published: Jun 27 2022 | 7:49 PM IST

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