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NCLT President Proposes Higher Admission Threshold for Insolvency Cases
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News18•01-10-2026, 21:45
NCLT President Proposes Higher Admission Threshold for Insolvency Cases
- •NCLT President Justice Anupinder Singh Grewal suggested increasing the financial threshold for admitting insolvency cases.
- •The proposal aims to filter out cases primarily seeking recovery of dues rather than insolvency resolution.
- •Grewal recommended raising the threshold to Rs 5 crore, up from the current Rs 1 crore set in 2020.
- •He also advocated for reforms like mediation and sector-specific carveouts to improve the insolvency process.
- •Minister Harsh Malhotra and IBBI Chairperson Jayanti Prasad highlighted IBC's positive impact on credit discipline and business recovery.
Key Questions Answered
NCLT President Justice Anupinder Singh Grewal suggested increasing the financial admission threshold for insolvency cases to Rs 5 crore to prevent cases filed merely for debt recovery. The threshold was previously raised to Rs 1 crore in 2020.
Alongside raising the financial admission threshold, NCLT President Justice Anupinder Singh Grewal suggested implementing reforms such as the use of mediation and introducing sector-specific carveouts.
Minister of State for Corporate Affairs Harsh Malhotra and IBBI Chairperson Jayanti Prasad attended the event, noting that the IBC has strengthened credit discipline and enabled substantial recoveries for creditors.
