Company law tribunal gets set to take over bankruptcy work
Norms on the insolvency regulation process to be notified and at least 10 insolvency professionals to be registered on 30 November
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New Delhi: The insolvency resolution process has gained momentum with 1 December being the official date when the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) take over bankruptcy work.
Regulations for insolvency professional agencies (IPAs) and insolvency professionals (IPs) were notified last week. Regulations on the insolvency regulation process will be notified and at least 10 insolvency professionals will be registered on Wednesday, a person familiar with the developments said.
The regulations on the liquidation process will also be notified soon.
The Parliament passed the Insolvency and Bankruptcy Code in May.
The ministry of corporate affairs will hold a four-day training session for the NCLT and NCLAT members starting 1 December. NCLT and the NCLAT are tasked with handling corporate insolvency. The debt recovery tribunals will be responsible for personal insolvency matters.
On Tuesday, Institute of Chartered Accountants of India and Institute of Company Secretaries of India were registered as IPAs, who will act as regulators for IPs.
An examination for IPs will also be held in a month’s time.
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The 10-member Insolvency and Bankruptcy Board of India, the apex regulatory body for bankruptcy framework, will soon appoint five more members, of which three will be full-time. At present, the IBBI, chaired by M.S. Sahoo, has four ex-officio members—Ajay Tyagi, additional secretary, department of economic affairs; Amardeep Singh Bhatia, joint secretary, ministry of corporate affairs; G.S. Yadav, joint secretary, department of legal affairs; and A. Unnikrishnan, legal adviser, Reserve Bank of India.