The Department is in the process of finalizing amendments to the Insolvency and Bankruptcy Code (IBC) to make it more efficient.

Speaking at an event organized by the National Company Law Tribunal (NCLT), Verma suggested that to increase the effectiveness of the IBC, consideration should be given to introducing a cross-border insolvency framework in the IBC. “The use of technology and the filling of positions are two key factors to increase speed,” said an official statement from the ministry, which quoted Verma.

The government is currently filling vacancies in the NCLT to help clear the case backlog.

Chief Justice (Retd.) Ramalingam Sudhakar, who was the main guest at the event, said that one aspect of resolving cases early is the development of artificial intelligence (AI) technology for faster adjudication. “AI can be used in case resolution, especially case intake,” the statement said, citing Sudhakar.

Ravi Mital, Chairman of the Insolvency and Bankruptcy Board of India (IBBI), who was present on the occasion, said that with more standardization, the speed of resolution of cases could increase. IBBI is always willing to work with NCLT to simplify the resolution process, he said.

Delays in allowing cases to go to court and the extent of haircuts taken by lenders when approving restructuring companies under new management were two concerns raised by a parliamentary panel last year. The changes examined by the ministry are intended to remedy this. Of course, NCLT not only handles bankruptcy cases, but also other cases under the Companies Act.

NCLT has resolved three-quarters of the more than 83,800 cases filed with it since its inception in 2016.