New Delhi: The lenders of the companies, which are going through corporate insolvency resolution process, should act swiftly while taking a decision as any delay erodes the value of assets, said NCLT President Justice M M Kumar.
The Committee of Creditors (CoC), which consists of lenders, should be represented by senior authorised people, who can take a decision on the spot in the meeting, he said.
"If Corporate Insolvency Resolution Process is to be taken seriously, the CoC must come with members who are fully authorised to take a decision then and there, and not by circulation. They must be authorised, not that I would go back and discuss with my seniors and come back. You are taking a serious process very casual that is not expected," Justice Kumar said.
Speed is the essence of IBC and all the stakeholders including NCLT has to deliver efficiently so that value of the stressed asset should not deplete further, he noted.
"Thousand of crores are involved and it is the money of creditors and eventually of general public money. Therefore, every stakeholder in this process has to be very very serious," said
Justice Kumar, while speaking at a seminar on "Restructuring of Stressed Assets - Current Scenario" by industry chamber PHDCCI here.
"CoC behaves in a manner sometimes, which is not warranted," he said.
Sometimes Resolution Professional's advise are not taken seriously although they are qualified as CS, CA, and advocate.
"The Resolution Professional is the most important person in the process. It is RP who has to act as a bridge between the CoC and the NCLT," he said, adding that RP should be so "well equipped" that CoC must feel word to word advice.
Highlighting the achievements of the NCLT, Justice Kumar said that only 10 percent of the cases decided by it are going for appeal at higher forums.
Updated Date: Jul 25, 2018 07:35 AM