**Summary:**
On May 8, 2025, Shri M. Nagaraju, Secretary of the Department of Financial Services (DFS), Ministry of Finance, chaired a review meeting to assess the progress of Public Sector Banks (PSBs) in clearing pending cases for admission at the National Company Law Tribunal (NCLT). The meeting included senior officials from DFS, the Ministry of Corporate Affairs, the Insolvency and Bankruptcy Board of India (IBBI), and top management from PSBs. Discussions focused on improving the effectiveness of the insolvency resolution process, with a detailed review of cases awaiting NCLT admission. PSBs were directed to expedite the resolution process by minimizing delays in filing Corporate Insolvency Resolution Process (CIRP) applications, avoiding unnecessary adjournments, and pursuing alternative recovery channels concurrently. Bank advocates were instructed to challenge frivolous attempts by opposing parties to delay proceedings. The DFS urged banks to regularly review their top twenty cases and monitor accounts with Resolution Plans pending consideration with the Committee of Creditors (CoC) for over three months. Banks were also instructed to prioritize vacating stay orders to resume resolution processes promptly. The meeting concluded with an emphasis on strengthening the recovery framework through coordinated efforts to ensure a more robust and efficient resolution process.
Key Entities Referenced
Ministry of Finance: The government ministry responsible for financial matters.
Department of Financial Services: A department under the Ministry of Finance, abbreviated as DFS.
Shri M. Nagaraju: Secretary, Department of Financial Services DFS, chair of the review meeting.
Public Sector Banks: Government-owned banks in India, focus of the review meeting.
National Company Law Tribunal: A quasi-judicial body in India that adjudicates issues relating to companies, abbreviated as NCLT.
CIRP: Corporate Insolvency Resolution Process applications, related to insolvency resolution.
Insolvency and Bankruptcy Board of India: Regulatory body that oversees insolvency proceedings and professionals in India.
Committee of Creditors: A committee of financial creditors that represents the interests of lenders during the insolvency resolution process, abbreviated as CoC.
Ministry of Finance
Secretary, DFS chairs a review meeting to monitor
the progress of Public Sector Banks in clearing
pending cases for NCLT
Banks advised to expedite the resolution process by
minimising delays in filing CIRP applications
Posted On: 08 MAY 2025 7:40PM by PIB Delhi
Shri M. Nagaraju, Secretary, Department of Financial Services (DFS), chaired a review meeting today to
monitor the progress of Public Sector Banks in clearing pending cases for admission at National Company
Law Tribunal (NCLT). The review entailed a follow up on important issues for improving the effectiveness of
insolvency resolution process. The meeting was attended by senior officials of Department of Financial
Services, the Ministry of Corporate Affairs, the Insolvency and Bankruptcy Board of India, and the top
management of Public Sector Banks.
A detailed review on cases pending for admission at NCLT was undertaken. The Banks were advised to
expedite the resolution process by minimising delays in filing CIRP applications, avoiding asking for
unnecessary adjournments and simultaneously keeping other channels of recovery open. The Advocates of the
Banks should oppose any attempts to delay proceedings on frivolous grounds by the opposing parties.It was informed that few accounts have been resolved by Banks since the last review through various
mechanisms under recovery. DFS urged the management of the banks to review their top twenty cases
regularly and also monitor those accounts where Resolution Plans are pending for consideration with
Committee of Creditors (CoC) for more than three months. In addition, banks were told to focus their
attention on getting stay orders vacated so as to resume the resolution process without further loss of time.
The meeting ended with the message to strengthen the recovery framework through coordinated efforts and
ensuring a more robust and efficient resolution process.
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NB/AD
(Release ID: 2127795)