• Welcome to NPA Consultants Pvt. Ltd.
  • +919892855900
  • info@npaconsultant.in

Blog List

img

Non Performing Assets and Corporate Litigations: Expert Insights

Posted Date: 07-11-2023 Posted By: user

Non-Performing Assets and Corporate Litigations: Expert Insights

For a bank, nothing is more frustrating than having Non-Performing Assets or NPA. Though there are legal ways of managing them, it could be a tedious job. Legal processes can be very tedious and slow. Banks are supposed to find ways to boost the morale of the legal team. There are many technical ways of dealing with that.

If you search in the market, then there are many legal firms that are designed as per the requirements of your case. There could be litigation mitigation systems, which are better alternatives. They are designed from the perspective of banks. With their adaptive case management framework, which is specifically designed to streamline the legal workflow for independent or corporate lenders,  financial institutions, and banks.

Litigations are nothing but types of lawsuits. When a business is involved in it, you can call it corporate or commercial litigation.

According to the opinion of experts, corporate litigation is different than other lawsuits. They are just about one business suing another. It also includes legal proceedings related to a corporation or firm. It involves a lot of contract issues and in its journey, a business may face it several times.

What is covered under that? 

Among the top three corporate litigations, deceptive or fraud practices, employer and employee duties, and violation of contract are the top.

Litigation Management Systems emphasizes the need for automation of the recovery process of the Non-Performing Assets lifecycle. These legal management systems are well integrated with the Credit Balance System, and they can support multiple hierarchies such as branches, regional offices, zonal offices, and head offices.

Key processes of litigation

The legal process begins at the initialization stage. There are various levels of approval. Also, there are automated legal and court processes to make it paperless. The Litigation Management System improves the ability of a bank to respond to the filed suit. It maximizes system efficiency. The system plans legal and security enforcement processes, it can offer real-time access to customized templates as well as detailed case documents. It can generate letters and advertisements in newspapers. It is possible to generate automatic reminders for important events and dates. It can generate letters to inform us about all deadlines. It is possible to show the dashboard and MIS reports in real-time.

The litigation management system can monitor every stage of the legal process. It can do performance management or one-time settlement with multiple levels of approvals. It is possible to attach all documents and photographs virtually. Real-time tracking of expense management and compliance management can also be done using LMS. It can control Non-Performing Assets up to a great extent.

The Litigation Management System is a repository of circulars and documents

When Non-Performing Assets are managed using a Litigation Management System, it could be a big challenge to share documents. The bigger the bank or NPA, the bigger the challenge. It becomes easy to upload documents and view them. Once all documents are uploaded into the system, it becomes easy to manage documents.

Not only a desktop-based system, but a mobile-based LMS provides furthermore flexibility at court proceedings and many other things. This is because mobile handset devices are more useful and handier.

Conclusion

Banks and financial institutions face a big problem in managing non-performing assets or NPA. It can cause sleepless nights for bank officials.

Among various methods that can control NPA, corporate litigation is important. It involves a whole list of contract and tot issues.

A corporation may face several legal problems over a long period. It will come under commercial litigation and corporate litigation. A computerized Litigation Management System makes the process easy and system-driven.