Legal Insights from 2024-25 Standing Committee Report on IBC & NCLT

The 2024-25 Standing Committee on Finance praises the IBC for recovering over Rs. 3.5 lakh crore but highlights issues like delays, rising costs and competence concerns.

Recommendations:

1. Establish fast-track tribunals for high-priority insolvency cases.
2. Implement an urgent list system for time-sensitive matters.
3. Mandate application processing within 14 days to reduce delays.
4. Enhance Resolution Professionals' standards with certification and reviews.
5. Clarify government dues treatment for equitable resolutions.
6. Expedite filling vacant posts and upgrading IBC procedural rules.
7. Prioritize integrated IT platform development and infrastructure upgrades.
8. Implement a performance monitoring system for case pendency and disposal.
9. Accurately reflect case backlog by counting additional applications separately.