Illustration: Binay Sinha
Officials in the ministry said 30 judges might be recruited.
“Our focus is to hire as many judges as possible because the tribunal cannot function without them. It can function with a few technical members or none, but not without judicial members,” said a senior official. Eight courts would be set up for this, three in Mumbai, two in New Delhi, and one each in Chennai, Kolkata, and Hyderabad.
Once these starting functioning, there will be seven NCLT
courts in Mumbai, six in New Delhi, and three each in the other three cities.
When the Reserve Bank of India (RBI) came up with its first list of non-performing assets to be referred to the NCLT
last year, experts had said there would be a burden on the tribunals because of a few number of Benches.
deals with company law cases and mergers and acquisitions, apart from insolvency
and bankruptcy cases.
Of the first 12 cases referred by the RBI, two have been resolved.
Apart from the government working towards a cross-border insolvency
framework that will require the upgrade of infrastructure at the NCLT, e-courts will be set up so that in the jurisdictions that sign an understanding with the Indian government, cross-border insolvency
proceedings can take place.
A committee is discussing the contours of cross-border insolvency
Globally, the UNCITRAL (United Nations Commission on International Trade Law) Model Law on Cross-Border Insolvency, 1997, has emerged as the most widely accepted legal framework to deal with cross-border insolvency
Owing to the growing prevalence of multinational insolvencies, the Model Law has been adopted by 44 countries, including Singapore, the UK, and the US.
and Bankruptcy Code came into effect in 2016.