Efficacy of Adjudication Process of Corporate Insolvency Resolution Process (CIRP): Law and Economics of National Company Law Tribunal (NCLT)

Abstract

Abstract National Company Law Tribunals (NCLTs) form the backbone of the institutional setup of the corporate law mechanism. The tribunals though were initially given a minimal role in the judicial procedure of the corporate world and were seen with scepticism, their significance could not be ignored for long. With the increase in insolvency disputes, the NCLTs were even given the jurisdiction to handle the cases regarding the Insolvency and Bankruptcy Code (IBC) and Corporate Insolvency Resolution Process (CIRP) . However, the efficiency of these tribunals has to be inspected with respect to CIRP cases for knowing the clear picture. In this paper, an economic analysis of the working of the NCLT Ahmedabad is undertaken to get a better understanding of the efficiency of the NCLTs in general. The study relies on qualitative tools such as interviewers conducted by relevant stakeholders and observing NCLT court proceedings to capture the measurement reality of NCLT efficiency. The study also relies on descriptive statistics of time taken and recovery to measure the efficacy of NCLT.