Insolvency resolution will speed up: Sahoo
Sticking to a timeline of 180 days for resolution under the Insolvency and Bankruptcy Code was important and the system would evolve so that it would not take that long for resolution, said M S Sahoo, chairperson, Insolvency and Bankruptcy Board of India (IBBI).
Responding to a query during a meeting with stakeholders Sahoo said, “Initially there may be some problems as systems are not in place. As many transactions go through, practices will be streamlined, standardised and automated. Artificial intelligence will come in and machines will take over a lot of the work.”
In some cases, efforts are on to speed up the process to within 90 days.
Sahoo said the adjudicating authority, regulations for insolvency professionals and agencies, and registration of insolvency professionals had been completed.
He added: “Under the information utilities, we need to have information about all credits, authenticate and verify them, make correct information available. This will help the National Company Law Tribunal to admit or reject a matter, help insolvency professionals to verify the claims, so that the transactions move expeditiously. The regulation has been notified. Now it is for the market to come up, seek registration and start working.
Lawyers pointed out the regulations for insolvency professionals required them to quote their fees, which was against Bar Council rules. Sahoo replied that the issue had to be resolved by lawyers and the Bar Council and the IBBI would not be involved in the matter.