Swift resolution required: Capacity gaps threaten insolvency outcomes

As the government is doing a number of things to improve the ease of doing business, it must recognise that a smooth and predictable exit mechanism is as critical as facilitating entry

The Ministry of Corporate Affairs’ move to seek Cabinet approval for 50 additional National Company Law Tribunal (NCLT) courts and two more National Company Law Appellate Tribunal (NCLAT) Benches once again draws attention to a structural weakness that has long constrained the effective functioning of the Insolvency and Bankruptcy Code (IBC). The problem is not new. The NCLT was originally constituted to administer company law, but it was subsequently entrusted with the responsibility of adjudicating insolvency cases under the IBC without a commensurate expansion in capacity, infrastructure, or support staff. Given this mismatch between mandate and capability, persistent delays in