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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 slow and cumbersome. 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, 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 from other lawsuits. They aren’t 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 over time, a business may face it multiple times.

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What is covered under that? 

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

Litigation Management Systems emphasize the need for automation of the recovery process of the Non-Performing Asset 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, automatic reminders for important events and dates, and letters to inform about all deadlines. The system can display the dashboard and MIS reports in real time.

The Litigation Management System can monitor every stage of the legal process. It can manage performance or a one-time settlement with multiple levels of approval. 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, which helps control Non-Performing Assets to a significant extent.

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The Litigation Management System is a repository of circulars and documents

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

Not only is a desktop-based system useful, but a mobile-based LMS provides further flexibility during court proceedings and other processes. Mobile devices are more practical and handier in such scenarios.

Conclusion

Banks and financial institutions face significant challenges in managing Non-Performing Assets or NPA. It can cause sleepless nights for bank officials.

Among various methods to control NPAs, corporate litigation is essential. It involves numerous contract and tort issues. A corporation may face several legal problems over time, which fall under commercial or corporate litigation. A computerized Litigation Management System makes this process easier and more systematic.