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Bankrupt Companies Turn to Judiciary to Disrupt Insolvency Proceedings
March 14, 2018
In a bid to delay and possibly disrupt the insolvency process, bankrupt companies and their promoters are pursuing legal routes, which is one of the things in the legal system that companies have been exploiting for many years now.
Companies like BILT Graphic Paper, Videocon, etc. have turned to the civil justice system to resist the standard insolvency process, thereby causing a delay. Similarly, others including Liberty House, Renaissance Steel UltraTech Cement, etc. have approached the National Company Law Tribunal (NCLT) seeking relaxation.
Kotak Mahindra Bank VC Uday Kotak said that the legal obstacles may bring the insolvency process to a standstill.