The government plans to set up a national company law tribunal in a bid to streamline liquidation proceedings of companies.
Necessary amendments have been introduced in the Companies Act and efforts are currently afoot to resolve the legal hurdles regarding the setting up of NCLT, now pending in the Supreme Court, an official release said on Tuesday.
Once the tribunal is set up, the Board for Industrial Finance and Reconstruction and Company Law Board would be wound up, it said.
The provisions relating to winding up and liquidation of companies will be transferred from High Courts to NCLT.
"Rules are being framed to enable the liquidation proceedings to be conducted in a time-bound manner by the NCLT in the interest of stakeholders," the release said.
At present, winding up of companies is a long-drawn affair and liquidation on an average takes about 15-20 years. In some cases, liquidation has been going on for more than 50 years.
The government plans to set up a national company law tribunal in a bid to streamline liquidation proceedings of companies.
Necessary amendments have been introduced in the Companies Act and efforts are currently afoot to resolve the legal hurdles regarding the setting up of NCLT, now pending in the Supreme Court, an official release said on Tuesday.
Once the tribunal is set up, the Board for Industrial Finance and Reconstruction and Company Law Board would be wound up, it said.
The provisions relating to winding up and liquidation of companies will be transferred from High Courts to NCLT.
"Rules are being framed to enable the liquidation proceedings to be conducted in a time-bound manner by the NCLT in the interest of stakeholders," the release said.
At present, winding up of companies is a long-drawn affair and liquidation on an average takes about 15-20 years. In some cases, liquidation has been going on for more than 50 years.
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