Now, the National Company Law Tribunal (NCLT) must admit insolvency applications once default is proven, subject to procedural requirements and disciplinary checks: no more waiting around.
Specified financial creditors can initiate the out-of-court mechanism if at least 51% agree.
Plus, there's a three-month timeline for the NCLAT to reduce appellate delays, and new rules are in place to avoid conflicts of interest among professionals handling these cases.
With over ₹4 lakh crore already recovered since 2016, these tweaks are expected to help creditors get their money back even faster.