Government contemplates third bench of NCLT Kolkata

The Centre is planning to open a third bench of the National Company Law Tribunal (NCLT) in Kolkata, an official said Saturday. The move is part of the Centre's aim of easing the mounting pressure on the National Company Law Tribunals in the country. At present, there are two active benches of NCLT. "We have been asked to scout for space for another bench," NCLT Kolkata bench registrar SP Chattopadhyay said at an event at the Merchants' Chamber of Commerce here.

The new bench may be opened in 2019 itself if the government is able to find space in the existing location or any secondary location. The sanctioned strength for Kolkata is four benches. There are 12 benches now and one each in Cuttak and Kochi will come up soon, an official said.

"The government is also contemplating 8-9 exclusive benches for the Insolvency and Bankruptcy Code (IBC) in the wake of growing number of cases of insolvency," he said. The Kolkata bench had cleared 432 cases since June 2016. In respect of insolvency cases, resolution worth Rs 21,000 crore had been passed till January, he said.

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Resolution professional Mamata Binani said that in the first two years, IBC had evolved and a common belief that with the new law, liquidation of companies are on the rise. "It is found that 75 per cent of the companies liquidated were chronically sick and were since from BIFR or SICA era," Binani said.