Government to strengthen the framework of NCLT: Finance Minister
The government will strengthen the framework of the National Company Law Tribunal (NCLT) and implement systems such as e-courts along with alternate methods of debt resolution, Finance Minister Nirmala Sitharaman said on Monday.
Besides, the government will also introduce special framework for micro, small and medium enterprises (MSMEs), which have been facing stress since the coronavirus pandemic.
"To ensure faster resolution of cases, NCLT framework will be strengthened, e-courts system shall be implemented and alternate methods of debt resolution and special framework for MSMEs shall be introduced," Sitharaman said while presenting Union Budget for 2021-22.
Under e-courts system, virtual hearings are conducted.
The NCLT, which is assigned cases of company and corporate matters, with insolvency matters piling up, has been facing challenges in terms of infrastructure.
At present, hearing of all NCLT benches across India and NCLAT are conducted virtually following the pandemic and the guidelines issued by the government.
It has gone digital by adopting virtual hearings, online submissions with a new standard operating procedure, but the pandemic has resulted in a slow-down in the resolution process.
The tribunal was set up under section 408 of the Companies Act, 2013, on June 1, 2016.
Besides a principal bench at New Delhi, it has 14 other benches across India in cities which includes Ahmedabad, Allahabad, Bengaluru, Chandigarh, Chennai, Guwahati, Hyderabad, Kolkata, Mumbai, Cuttack, Jaipur, Kochi, Amravati and Indore.
Last month, the government had inaugurated the Chennai Bench of National Company Law Appellate Tribunal (NCLAT).
Subsequently, fresh appeals filed after January 25 against the orders of the NCLT benches having jurisdiction in southern states like Karnataka, Tamil Nadu, Kerala, Andhra Pradesh and Telangana along with Union Territories of Lakshadweep and Puducherry, would be taken up before the Chennai bench of NCLAT.