The special bench of the National Company Law Tribunal (NCLT) Mumbai to hear the scheme matters including mergers, demergers and amalgamation of companies have disposed of majority of the cases through virtual hearings.
Speedy disposal of such scheme matters will help restructure companies for better efficiencies during the ongoing slowdown period.
When the special bench had commenced hearing, about 350 cases were pending out of which over 200 have been disposed of already, and by the June end, all the pending cases are expected to disposed of, lawyers and consultants appearing in such matters, said.
“There is clearly a silver lining in the whole situation and with the deferral in the IBC triggers for the next one year, scheme and company matters will get heard and tribunals should pass orders expediently. It would be a good time to push internal reorganisations,” said Girish Vanvari, founder of a boutique advisory firm Transaction Square. “We have seen tribunal passing an order in about a dozen matters in last one month.”
Typically, NCLT takes up three kinds of cases, IBC matters, scheme matters for merger and amalgamation and also company cases that involve oppression and mismanagement.
According to Hemant Sethi, an advocate practising company matters at NCLT as well as the Bombay High Court, virtual courts have come to the rescue of various corporates in the time of global Pandemic. He has represented companies including Tata chemicals, Godrej industries, Lodha developers and De Beers India for various scheme matters.
The special bench was constituted by the tribunal on March 21, just three days before the announcement of the nationwide lockdown. The division bench of Rajasekhar VK and V Nallasenapathy was constituted to deal with all such matters.
Since its inception, the special bench is hearing 25 cases daily on an average where virtual hearings are taking place and orders are being passed. The tribunal has also started virtual filing of fresh cases.
“The constitution of the special bench under the notification has definitely expedited matters,” said Ankita Singh, partner of law firm A&P Partners. “This, coupled with the current announcement of the suspension of fresh filings under the IBC code, inevitably will reduce the backlog of cases in the NCLT leading to faster resolutions for all pending cases.”
Source- Economic Times.