Govt considers automatic route for creditors in IBC to speed up resolution

Such a move requires strengthening of information utility system: Official

In order to expedite the admission of insolvency resolution cases, the government is considering making the process automatic — for the financial creditors (FCs) to begin with. However, a senior government official said while this is the intent, such a move requires strengthening of the information utility (IU) system under the Insolvency and Bankruptcy Code (IBC).
 
“Cases under Section 7 of the IBC should be able to go through an automatic route. The IU has to enable it. Then, the National Company Law Tribunal (NCLT) does not have to sit over admission,” said the official.
 
The IU is