The Apex Court stated that 330 days deadline for the resolution plan has to be strictly followed, and NCLT and NCLAT must decide on insolvency and bankruptcy matters keeping in mind the saintly of the deadline given by the legislature.
A bench headed by Justice D Y Chandrachud stated that before this bankruptcy code failed mainly due to long delays in litigation in judicial forums and guaranteed that the present IBC will not be permitted to meet the same fate
Further addressing a question on the high haircuts taken by banks in resolution to some bankruptcy cases, RBI governor Shaktikanta Das stated that the Insolvency and Bankruptcy Code(IBC) process needs some advancement which will include some legal changes as well.
The RBI has certain advice which it has flagged to the government, citing an example of the time taken before a case is admitted in a National Company Law Tribunal (NCLT) and comes up for resolution by court-directed steps and recommended that the same can be dealt through legal amendments.
He said that all-inclusive recoveries from the IBC process used to be at 45 per cent at the total level four years ago and have come down to 40 per cent in the year due to covid-19.
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