The corporate affairs ministry has proposed setting up special courts under the National Company Law Tribunal (NCLT) to deal with insolvency cases. Ministry officials say eight courts are proposed to be set up for this purpose. “These courts will be set up in Mumbai, Delhi, Chennai, Kolkata, and Hyderabad,” a senior ministry official said.
According to the report, the decision comes at the backdrop of the large volume of insolvency cases that NCLT has to deal with.
As per a government statement in the parliament, a total of 9,073 cases were under consideration in the NCLT as on January which included 1,630 cases of merger and amalgamation, 2,511 cases of insolvency and 4,932 cases under other sections of the Companies Act, 2013.This number, later doubled in the following months, burdening the tribunal even further, the report added.