An Integrated Technology Platform will be set up for improving the outcomes under the Insolvency and Bankruptcy Code (IBC), Finance Minister Nirmala Sitharaman announced on Tuesday.
This will be implemented for achieving consistency, transparency, timely processing and better oversight for all stakeholders, Sitharaman said in her 2024-25 Budget speech.
On Limited Liability Partnerships (LLPs), Sitharaman said that the services of the Centre for Processing Accelerated Corporate Exit (C-PACE) will be extended for voluntary closure of LLPs to reduce the closure time.
Sitharaman also said that appropriate changes to the IBC, reforms and strengthening of the tribunal and appellate tribunals will be initiated to speed up insolvency resolution. “Additional tribunals will be established. Out of those, some will be notified to decide cases exclusively under the Companies Act”, Sitharaman added.
Sitharaman highlighted that the IBC has resolved more than 1,000 companies, resulting in direct recovery of over ₹3.3-lakh crore to creditors. In addition, 28,000 cases involving over ₹10-lakh crore have been disposed of, even prior to admission.
Srinivasa Rao, Partner- Risk Advisory, Nangia Andersen LLP, said the Budget reaffirms the commitment to strengthening the IBC and tribunals through technological advancements and increased tribunal capacity. This commitment aims to foster a more efficient and effective insolvency resolution environment in India, providing stakeholders with confidence in the future of the system.
Amit Maheshwari, Tax Partner, AKM Global, a tax and consulting firm, said; “Integrated technology platform is proposed to be setup for matters under IBC for better outcomes. This is proposed to be done for better transparency, to achieve consistency and better oversight by all stakeholders. Additional NCLT benches to be setup will reduce the pending cases and result in quicker closure of liquidation matters.”
Shiju PV, Senior Partner, IndiaLaw LLP, said, “Efficient and innovative use of technology is critical for a time bound process like IBC. Introduction of integrated technological platform is a welcome step to streamline the process and for faster out comes. We expect introduction of more NCLT Benches also to fasten the process”