With the National Company Law Tribunal (NCLT) and the National Company Appellate Law Tribunal (NCLAT) closing for vacations, the resolution process for firms undergoing bankruptcy proceedings are staring at further delays.
The Bengaluru, Chennai and Ahmedabad Benches of the NCLT are already on a two-week vacation, while the vacations for Mumbai, Kolkata and Hyderabad Benches will begin May 21 and end on June 1.
Though it is for the committee of creditors (CoC) and resolution professionals (RPs) to decide on a resolution plan, consultations with the tribunals will not be possible during their holidays.
Lawyers are concerned about the way ahead. “At the moment there is no clarity on this but I believe wherever the vacation period comes in the way of the timelines, the parties concerned will definitely approach the NCLT for an extension,” said Subodh Sadana, partner at Advaita Legal.