The government is planning to establish eight special courts under NCLT to deal with insolvency cases, reported Business Standard.
The idea was put forward by the Corporate Affairs Ministry, said the report.
“These courts will be set up in Mumbai, Delhi, Chennai, Kolkata and Hyderabad,” a senior ministry official was quoted in the report. The report added that three of the courts will be set up in Mumbai, while two are likely to come up in Delhi.
This in turn will make the number of courts in Mumbai climb up to seven and that of Delhi to six.
According to the report, the decision comes at the backdrop of the large volume of insolvency cases that NCLT has to deal with.
As per a government statement in the parliament, a total of 9,073 cases were under consideration in the NCLT as on January which included 1,630 cases of merger and amalgamation, 2,511 cases of insolvency and 4,932 cases under other sections of the Companies Act, 2013.
This number, later doubled in the following months, burdening the tribunal even further, the report added.