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The Secretary, Department of Financial Services (DFS), M. Nagaraju, chaired a review meeting today to discuss the issues related to pending IBC cases. Senior officials of DFS, the Insolvency and Bankruptcy Board of India and the top management of Public Sector Banks attended the meeting, as per a press release from the Ministry of Finance.
Progress on the cases that were admitted at NCLT, those which were resolved at NCLT and the ones disposed of outside the IBC was acknowledged. The review of major cases awaiting admission and resolution at the NCLT benches was undertaken. Secretary (DFS) emphasised that the timelines in the admission of corporate insolvency resolution process (CIRP) applications and resolution of the cases must be adhered to. During deliberations on cases where Resolution Plans are pending with the Committee of Creditors (CoC), banks were advised to adopt a coordinated approach to reach a final decision. Banks were told to pursue with their counsels for early admission of the pending cases for ensuring a more robust and efficient resolution process and also to minimise delays in filing CIRP applications in order to expedite the resolution process. Banks were advised to take note of the IBBI circular dated November 4 and ensure that Resolution Professionals file the required undertaking before the Special PMLA Court for restitution of assets attached by the Enforcement Directorate. The collaboration with stakeholders is to be streamlined for effective implementation of the CIRP, which shall also prevent delays in admission and resolution at NCLT. The Chief Executives of all PSBs were advised to personally continue monitoring the top 20 cases pending admission and the 10 accounts pending resolution at NCLT pertaining to their bank. Banks must take swift action to dispose of cases where Resolution Plans are pending with CoC. Further, the Secretary urged the banks to adopt a strategic approach to streamline and strengthen the IBC ecosystem to maximise value and enhance recoveries. (ANI)
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