Indian Supreme Court: Insolvency and Bankruptcy Matters Must Be Decided in 330 Days

The Indian Supreme Court on Monday said that 330 days deadline for resolution plan has to be strictly adhered to and NCLT and NCLAT must decide insolvency and bankruptcy matters keeping in mind the sanctity of the deadline provided by legislature. A SC bench headed, by Justice D Y Chandrachud, said that earlier bankruptcy code failed mainly because of long delays in litigation in judicial forums and promised that the present IBC will not be allowed to meet the same fate. "Once the Committee of Creditors submits a resolution plan for stressed assets under Insolvency and Bankruptcy Code, it cannot be modified or withdrawn by resolution applicant," the SC said. Meanwhile addressing a question on the high haircuts taken by banks in resolution to some bankruptcy cases, RBI governor Shaktikanta Das Las week said that the Insolvency and Bankruptcy Code (IBC) process needs some improvement which will include some legislative changes as well. Read more.