NCLT president pushes for higher IBC threshold
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- ✓NCLT President Anupinder Singh Grewal suggested raising the insolvency threshold from ₹1 crore to ₹5 crore or ₹10 crore on Thursday.
- ✓He said, "I do feel that the threshold needs to be revised upwards." He also pushed for mediation to resolve disputes early and warned against professionals who breach integrity.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Financial Express
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
The National Company Law Tribunal (NCLT) President, Anupinder Singh Grewal has called for a rethink of the threshold for initiating insolvency proceedings, suggesting that the existing ₹1 crore limit could be raised to ₹5 crore or even ₹10 crore. He also pushed for mediation to resolve disputes before they enter the corporate insolvency resolution process (CIRP).
At an Insolvency and Bankruptcy Board of India (IBBI) event on Thursday, Grewal said a large number of cases involving claims of Rs 1-2 crore appeared to be driven more by recovery objectives than genuine insolvency resolution.
"I do feel that the threshold needs to be revised upwards, perhaps to ₹5 crore or even ₹10 crore," he said.
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Financial Express
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