Finance Panel for appointing HC judges as NCLT members to reduce litigation

Bank funds worth Rs 9.2 trillion struck in NCLT; committee wants benchmark on quantum of haircuts as in many cases, they are as high as 95%

Taking a grim view of the sagging recoveries by the banks and a huge delay in the entire process, the Standing Committee on Finance of the Lok Sabha today recommended overhauling the entire IBC (insolvency and bankruptcy code) process, rejecting any bids which comes after the lenders select the highest bidder and appointment of high court judges in the NCLT (National Company Law Tribunal) as judicial members in order to reduce litigation.

In its report, the committee noted that 71 per cent cases are currently pending for more than the mandatory 180 days in the NCLT, which points out the