India's Insolvency Code: Mediation Urged to Speed Up Resolutions and Ease NCLT Overload

Overview

India's Insolvency and Bankruptcy Code (IBC) is facing significant delays, with over 67% of Corporate Insolvency Resolution Processes (CIRPs) exceeding the 270-day limit. This overburdening of the National Company Law Tribunal (NCLT) diminishes creditor recovery and asset value. Experts suggest integrating mediation, a proven Alternative Dispute Resolution (ADR) method, as a vital solution. Recent developments, including the Mediation Act, 2023, and the IBBI Expert Committee Report 2024, support this, proposing mediation cells and voluntary integration to streamline processes and revive distressed companies more effectively.