NCLT: IBC’s objective not to emphasise on liquidation

National Company Law Tribunal (NCLT) President M M Kumar on Wednesday said the objective of the Insolvency and Bankruptcy Code (IBC) was to find appropriate solution for stressed assets and liquidation would be the last resort. Stating that there are jobs and livelihood at stake, Kumar said the idea was not to lay stress on liquidation of the companies facing insolvency proceedings. On efforts of the NCLT and the Insolvency and Bankruptcy Board of India for putting in place mechanisms for proper resolution in a short time span, he said the role of resolution professionals in finding suitable and amiable solutions for stressed companies was commendable. He, however, said bringing about changes in the code is not the mandate of the NCLT as its job is to enforce the code.