More than a year after it was set up under the Insolvency and Bankruptcy Code (IBC), the country’s first information utility (IU) NeSL now has records of two-thirds of all loans given by lenders and operational creditors.
This would assist in resolving any dispute that insolvent companies have with the lenders. The information utility has data verified by the debtor company. National Company Law Tribunal (NCLT) President M M Kumar had written to all NCLTs that creditor petition must contain records from the information utility. This was done to avoid delays on account of contest by debtors. In the past, there have been cases where debtor companies have contested the figures of unpaid loan amount given by lenders in NCLT.
NeSL has data from banks, non-banking finance companies, mutual funds and insurance companies. Apart from financial creditors, operational creditors can also submit information about their loans to firms.