The former President of the National Company Law Tribunal, Justice MM Kumar said that the government should organize capacity-building measures and make sure that efficient and fast appointments of the members are done in NCLT. He also added that NCLT is a specialized tribunal and it has the Companies Act and Insolvency and Bankruptcy Code (IBC) involved in the adjudication process. It is not having functions similar to the High Court, which deals with constitutional matters and has to decide a variety of cases. These specially made tribunals must be very well equipped and must be in a position to dispose of more cases in comparison to High Court judge who disposes of very few cases in an entire year. This was said by the former president at a national E-summit on IBC and valuation organized by Assocham.
When the cases related to liquidation are seen closely it is discovered that all the bulk of cases coming to this Tribunal are coming from the Sick Industrial Companies Act or old cases transferred from High Court. Several articles are seen in journals and newspapers that groups are operating and professionals are not doing their job properly and all sorts of things are being told in open. He suggested that the aspect that how it can be clubbed must be seen. With respect to revamping the valuation system, he said that the professional bodies IRP, RPs, Cas are doing an excellent job but some revamping of valuation must be done. However, the Insolvency and Bankruptcy Board of India (IBBI) has made great attempts. He also said that our law is very old with respect to the valuation of intangible assets, non-financial assets and contingent claims. The government is duty-bound to protect the entrepreneurs who have faced CIRP.
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