DFS Secretary conducts review meeting to monitor the progress of Public Sector Banks in clearing pending cases for NCLT

On May 8, 2025, Shri M. Nagaraju, Secretary of the Department of Financial Services (DFS), convened a high-level meeting to assess the progress of Public Sector Banks (PSBs) in resolving pending cases at the National Company Law Tribunal (NCLT). The meeting aimed to enhance the efficiency of the insolvency resolution process under the Insolvency and Bankruptcy Code (IBC).​

Key Points from the Meeting:

1. Review of Pending Cases: A detailed analysis was conducted on cases awaiting admission under the Corporate Insolvency Resolution Process (CIRP) at various NCLT benches. The focus was on identifying bottlenecks and streamlining procedures to accelerate case resolutions.
2. Minimizing Procedural Delays: Banks were advised to reduce delays in filing CIRP applications and avoid unnecessary adjournments. Legal teams were instructed to actively oppose any attempts by defaulting parties to stall proceedings on frivolous grounds.
3. Regular Monitoring of Top Accounts: PSBs were directed to regularly review their top twenty non-performing accounts. Special attention is to be given to cases where resolution plans have been pending with the Committee of Creditors (CoC) for over three months.
4. Vacating Stay Orders: Banks were urged to focus on vacating stay orders promptly to resume the resolution process without further delays.
5. Strengthening Recovery Framework: The DFS emphasized the importance of coordinated efforts between banks’ legal and operational teams to enhance the overall efficiency of the resolution framework. Banks were encouraged to pursue alternate recovery channels alongside the IBC route.

The meeting concluded with a call for PSBs to adopt a disciplined and time-bound approach to asset recovery, reinforcing the government’s commitment to a robust and efficient insolvency resolution process.​

• Also Read: DFS Secretary M Nagaraju conducts surprise visits to Government Banks
• Also Read: DFS Secretary Reviewed Functioning of NABARD, Read Meeting Highlights
• Also Read: DFS Secretary Reviewed Progress of Regional Rural Banks, Read Meeting Highlights