Being from the South, have often felt Delhi was too distant: Finance Minister Nirmala Sitharaman during inauguration of NCLAT Chennai

Given that Southern States often feel that they have to travel too far to Delhi in seeking justice, the establishment of the National Company Law Appellate Tribunal's Chennai Bench (NCLAT, Chennai) is a major step forward, said Union Finance Minister Nirmala Sitharaman on Monday. .Breaking: NCLAT Chennai Bench to start functioning through virtual mode from Monday [Read Notification].Sitharaman was among the dignitaries present for the virtual inauguration of the NCLAT Chennai, which will commence hearing matters concerning the Southern States through virtual mode from today, months after its establishment was first notified in March 2020. ."We have taken one big step in opening an NCLAT bench in Chennai. The Bench will serve Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, Kerala, Lakshwadeep and Puducherry. For those of us in the South who normally see Andaman and Nicobar also into this ring of States, I have consciously not mentioned Andaman and Nicobar because they go into the principal Bench in Delhi and are not part of the Chennai Bench of the NCLAT," Sitharaman said today .During her address, she also acknowledged that justice can appear far off for Southern and North-Eastern States, given the distance from Delhi where the NCLAT was solely located until now.."Southern States normally do have this feeling that to seek justice they travel too far because access to justice, in terms of physical access, has been always a challenge to the southern States, which are so far and distantly placed, like the way north-eastern States feel, from Delhi. In this context, other than Delhi, to have a Bench of the national company law appellate tribunal in Chennai to take care of the southern States...I think is a major step forward and (for) the efforts taken by the NCLAT, in particular Justice Bansi Lal Bhat, I thank you very much for providing this access to justice for the companies that are located in far flung States in the southern region," she observed..Sitharaman added that she also felt a sense of personal satisfaction given that she herself is from a Southern State. "In a way, I have a particular sense of satisfaction because, being from the southern States myself, I have most often felt that Delhi was too distant for us, and therefore the companies ...", she said. .She further noted that companies in the South have contributed immensely to the national income of the country while expressing hope that the NCLAT Chennai will cater to such companies.."Southern States do have a very big achievement to speak of in that, compared to many of the northern States, southern States and their contribution to the GDP, through manufacturing in the South, through the service sector in the South, is a very big success story ... (companies in) Karnataka, Kerala, Tamil Nadu Andhra Pradesh, IT in Telangana - have all made significant contributions and they need accessible appellate body for the company-related matters. And that is what is being provided by this Bench. Hopefully, the NCLAT will be able to deal with them with a greater sense of speedy justice," she said..Before concluding her address, Sitharaman also lauded the NCLAT and the National Company Law Tribunals (NCLTs) in continuing to function effectively during the COVID-19 lockdown and afterward as well. ."Between March and December 2020, as many as 985 cases were filed and out of that 681 cases were disposed of by the NCLAT (69%)... which is, I think, commendable," she said. .She further noted that despite being in existence for only aroung 4 years, approximately 5,600 cases were filed at the NCLAT as of December 2020, and approximately 3,800 cases pertaining to the Insolvency and Bankruptcy Code (IBC) alone have been handled. In total, about 4,200 matters were disposed of, she observed. Moreover, the NCLTs have dealt with around 71,000 cases , of which 50,000 cases approximately have been disposed of, she added. .Commending the Tribunals for their active engagement, Sitharaman said, ."IBC is contributing and delivering on the intent of the lawmakers not because of just the law being good, but also because those institutons which will have to enable that particular act to be effective in delivering justice. These institutions like the NCLTs and the NCLAT, are doing their job. It is because of that the effectiveness of the law itself is being felt by those who have to be the beneficiaries of such a law.".In his introductory address, Acting Chairperson of the NCLAT, Justice Bansi Lal Bhat noted that while 4 years is too short a time to adjudge the efficiency of a legal framework, the Indian legal framework for the resolution of insolvency has emerged a formidable mechanism. .While wishing the NCLAT Chennai a resounding success, he also recounted the words of former NCLAT Chairperson, Mukhopadhaya that speed is the essence of any resolution process. Judicial member at the NCLAT, Justice Venugopal M rendered the vote of thanks before the inaugural event came to a close. .The development comes close on the heels of petitions moved in the Madras High Court and the Supreme Court protesting the delay in setting up of NCLAT Chennai, given that the Supreme Court had directed for its establishment within six months' time back in December 2019 while pronouncing its verdict in the Swiss Ribbons case.