National Company Law Tribunal (NCLT) president M M Kumar today said the objective of the Insolvency and Bankruptcy Code (IBC) is to find appropriate solution for stressed assets and liquidation would be the last resort.
Stating that there are jobs and livelihood at stake, Kumar said the idea is not to lay stress on liquidation of the companies facing insolvency proceedings.
On efforts of the NCLT and Insolvency and Bankruptcy Board of India (IBBI) for putting in place mechanisms for proper resolution in a short time span, he said the role of resolution professionals in finding suitable and amiable solutions for stressed companies is commendable.
“The sole objective of the Insolvency and Bankruptcy Code 2016 is to find solutions for stressed assets arisen out of non-performing assets with best of intent as so many things are involved in the process and liquidation perforce would be the last way out which the tribunal would avoid optimally,” he said.
He, however, said bringing about changes in the code is not the mandate of the NCLT as its job is to enforce the code.
“Bringing about changes in the Code is entirely something which stays in the domain of Parliament,” Kumar said at an event held by PHD Chamber of Commerce and Industry here.