India's bankruptcy system faces a critical backlog as over 380 corporate turnaround plans approved by creditors await clearance from NCLT benches. The Supreme Court has intervened, demanding a status report on pending resolution applications and reasons for delays exceeding the mandated 330-day timeframe. This bottleneck highlights a significant gap between the Insolvency and Bankruptcy Code's promise of swift resolution and its actual implementation since 2016. The delays impact multiple stakeholders including shareholders, creditors, and new investors seeking court protection. Experts warn that prolonged pendency undermines the IBC framework designed to facilitate timely debt resolution. The apex court's intervention signals growing concerns about judicial efficiency in bankruptcy proceedings and may prompt systemic reforms to accelerate case adjudication across NCLT benches.
Post from MarketNews_en
Log in to interact with content.