IBC ecosystem may get common technology

New Delhi, May 17, 2023

The Insolvency & Bankruptcy Board of India (IBBI) is discussing a massive technological intervention — from filing data and debt & defaults to using artificial intelligence in the National Company Law Tribunal (NCLT) and its own systems. It also plans to connect multiple platforms used by actors in the system.

“The stakeholders of IBC currently work in silos and have their separate fragmented technological platforms. There is a need for a comprehensive IT platform that can ensure end-to-end integration and digitisation of the processes and serve as a single source of truth. An integrated platform would improve the outcomes of the insolvency process, including minimising delays, increased transparency, increased participation of resolution applicants, facilitation in effective decision making and maximisation of value,” IBBI chairman Ravi Mittal said inthe latest newsletter.

In their consultation paper released recently to draft amendments to the Insolvency and Bankruptcy Code (IBC), the government and IBBI had discussed the need for technological intervention in some of the areas.

Mittal has elaborated on some of the proposed measures and outlined the strategy. For instance, as part of the ecourts mechanism for the NCLT, the IBBI may look at validation-based, machine-readable applications as well as use of AI and predictive coding to cull out relevant case laws. Similarly, a virtual data room can be created for the ministry of corporate affairs, while streamlining information related to charges, directors, financial statements and loan related reporting.

The IBBI chairman said that currently there is little or no technological interaction between the multiple pillars of the insolvency ecosystem, resulting in silos.

[The Times of India]