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Govt. to soon appoint more judges in NCLT: PP Choudhary

 

Wednesday, October 25, 2017


Committed to create a clean & transparent system to promote ease of doing business
 
New Delhi, October 25, 2017: The government will soon appoint more judges in the National Company Law Tribunal (NCLT) which has been facing problems in handling large number of cases dealing with stressed assets under the new insolvency regime, Union Minister of State for Law & Justice and Corporate Affairs, Mr P.P. Choudhary said at an ASSOCHAM event held in New Delhi today.
 
“Some problem is there with respect to the appointment of judges in NCLT, but the process and everything is in pipeline, very soon some more appointments shall be made, and it is needed as we know that large number of cases are coming to NCLT and it should not be burdened with the cases,” said Mr Choudhary while addressing an ASSOCHAM conference on IBC (Insolvency and Bankruptcy Code) and RERA (Real Estate Regulation Act).
 
“If cases are not being decided timely, then the very purpose of providing ease of doing business can be frustrated,” he added.
 
Allaying the concerns of the industry, Mr Choudhary said that the purpose of the government is not to terrorise but to clean and create a transparent system, provide ease of doing business so that credibility of corporate structure is established.
 
“It is not only in India but all over globe that investors should know that this is the corporate structure where we can bank upon. Once this purpose is fulfilled, the more investments will flow in and credibility of the institution, corporate structure will be more and it will in-turn lead to ease of doing business,” he said.
 
The Union Minister also ensured the industry that whenever good inputs are provided by the various stakeholders, the government will welcome all those suggestions and try to incorporate be it in the IBC, RERA or regulations framed by the IBBI (Insolvency and Bankruptcy Board of India).
 
Highlighting that both IBC and RERA are also interlinked with various other laws, Mr Choudhary said that all those laws should also be taken into consideration. “There may be practical difficulties but we have to see compatibility with other laws, how it will work and it is by experience of various stakeholders that we can take corrective steps.”
 
He said that prior to IBC there were different laws and the experience has not been good with those laws. “Incompatible and conflicting provisions in various laws was the reason that insolvency resolution could not be achieved in time. Not only were they ineffective but also resulted in undue delays for resolution of dispute.”
 
Mr Choudhary also said that the IBC promotes entrepreneurship along with maximisation of value of assets. Besides, it is also good for timely availability of credit while balancing the interests of all stakeholders.
 
He said that insolvency professionals, information utilities and all these agencies and professionals, stakeholders need robust awareness about the law and professionalism as such implementation by all involved stakeholders - quasi judicial bodies, NCLT, professionals, agency and government is equally more important aspect.
 
Talking about real estate regulation, he said that the sector was earning a bad name but RERA has enhanced accountability, transparency, pan-India standardisation of process in real estate sector and established a robust dispute resolution mechanism. “In initial times we may be facing some difficulties but in coming years once a particular institution establishes credibility then it enhances investors.”

 
About ASSOCHAM:

ASSOCHAM initiated its endeavour of value creation for Indian industry in 1920. It was established by promoter Chambers, representing all regions of India. Having in its fold over 400 Chambers and Trade Associations, and serving over 4.5 lakh members across India. ASSOCHAM has emerged as the fountainhead of Knowledge for Indian industry, which is all set to redefine the dynamics of growth and development in the Knowledge Based Economy. More information available on www.assocham.org
 
For further details, please contact:
 
Manju Negi
AVDHESH SHARMA   
ASSOCHAM
ASSOCHAM   
011-46550509; +919810910911
011-46550508; +918527639419
 

 

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