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Banks opting for one-time settlement as NCLT waiting time goes up

According to resolution professionals, the delay in admission in some cases can stretch up to 11 months, especially if there is an intervening application while the hearing for admission is on

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Delay in admitting cases to the National Company Law Tribunal (NCLT) is prompting banks to opt for one-time settlements for small- and mid-sized companies. Consider this: Of the 33 cases referred to the NCLT by United Bank of India (UBI), only two have been admitted so far.  UBI, the sole lender in these cases, has discussed the matter with the NCLT. “Since a number of cases is waiting to be admitted, we expressed our concern on the matter with the NCLT. The long delay in admission is a serious concern for bankers,” said Ashok Pradhan, managing director ...