Kolkata, June 16 (IANS) - The National Company Law Tribunal (NCLT) has admitted 110 cases for corporate insolvency resolution, Insolvency and Bankruptcy Board of India's Chairperson M.S. Sahoo said on June 16. The default amount ranges from a few lakhs of rupees to Rs 6,000 crore, he said on the sidelines of an event organised by the Merchants' Chamber of Commerce.
Pointing out that high-value cases were also coming to the tribunal, Sahoo said the board had notified the fast-track insolvency resolution process on June 15. Regulations provide for initiation of insolvency resolution of eligible corporate debtors till its conclusion with an approval of the resolution plan by the adjudicating authority.
"The process in these cases will be completed within 90 days, as against 180 days in other cases," Sahoo said. However, the adjudicating authority may, if satisfied, extend the period of 90 days by a further 45 days for the completion of the process. "The fast-track process will apply to small companies with paid-up capital of less than Rs 50 lakh or an annual turnover of less than Rs 2 crore," he said.
According to Sahoo, the fast-track process will also apply to unlisted companies with total assets, as reported in the financial statement of immediately preceding financial year, not exceeding Rs 1 crore. A start-up which has not completed five years of existence or has a turnover of less than Rs 25 crore or engaged in frontier areas of technology can also be eligible for the process.
"We want quick turnaround of assets, which should be utilised. Wherever the level of complications are less, we should allow for faster resolution," he said.