NEW DELHI: The insolvency & Bankruptcy Board of India (IBBI) discusses massive technological intervention – from filing data on debt and default to using artificial intelligence in the National Company Law Tribunal (NCLT) and its own systems. It is also planned to connect several platforms used by the actors of the system.
“The stakeholders of IBC currently operate in silos and have separate, fragmented technology platforms. There is a need for a comprehensive IT platform that can ensure end-to-end integration and digitization of processes and serve as a single source of truth. “An integrated platform would improve insolvency process outcomes, including minimizing delays, increasing transparency, increasing the participation of resolution applicants, facilitating effective decision-making and maximizing value,” said IBBI Chairman Ravi Mittal said in the latest newsletter.
In their recently published consultation paper on draft amendments to the Insolvency and Bankruptcy Code (IBC), the government and IBBI had discussed the need for technological intervention in some areas.
Mittal explained some of the proposed measures in more detail and outlined the strategy. For example, as part of the e-courts mechanism for the NCLT, IBBI can look at validation-based machine-readable applications and the use of AI and predictive coding to filter out relevant case law. Similarly, a virtual data room for the Department of Corporate Affairs can be set up while streamlining information on fees, directors, financial reports, and credit-related reports.
The IBBI Chair said that there is currently little to no technological interaction between the different pillars of the insolvency ecosystem, resulting in silos.
“The stakeholders of IBC currently operate in silos and have separate, fragmented technology platforms. There is a need for a comprehensive IT platform that can ensure end-to-end integration and digitization of processes and serve as a single source of truth. “An integrated platform would improve insolvency process outcomes, including minimizing delays, increasing transparency, increasing the participation of resolution applicants, facilitating effective decision-making and maximizing value,” said IBBI Chairman Ravi Mittal said in the latest newsletter.
In their recently published consultation paper on draft amendments to the Insolvency and Bankruptcy Code (IBC), the government and IBBI had discussed the need for technological intervention in some areas.
Mittal explained some of the proposed measures in more detail and outlined the strategy. For example, as part of the e-courts mechanism for the NCLT, IBBI can look at validation-based machine-readable applications and the use of AI and predictive coding to filter out relevant case law. Similarly, a virtual data room for the Department of Corporate Affairs can be set up while streamlining information on fees, directors, financial reports, and credit-related reports.
The IBBI Chair said that there is currently little to no technological interaction between the different pillars of the insolvency ecosystem, resulting in silos.
