IBBI adds 1,060 insolvencies in two years

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IBBI adds 1,060 insolvencies in two years

The Insolvency and Bankruptcy Board of India (IBBI) has admitted 538 and 522 cases, respectively during the periods for 2020-21 and 2021-22 (up to the quarter ending 31 December 2021) into the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016.

The Minister of State for Corporate Affairs, Rao Inderjit Singh, highlighted this in a written reply to a question raised in parliament, according to a circular on the government website.

Of the cases admitted, 49 were appealed, reviewed or settled in 2020-21, while the figure for the same in 2021-22 stood at 13. Cases that were withdrawn under section 12A of the code numbered 93 in 2020-21, and 47 in 2021-22.

In 2020-21, while nine cases went for resolution, 63 filed for liquidation and 324 were still ongoing. In 2021-22, 458 cases were ongoing, while four filed for liquidation and none went for resolution.

The provision relating to the CIRP, which began from 1 December 2016, had so far seen 4,946 petitions as at the end of December 2021.

Ravi Mittal, chairman at the IBBI, said that increasing cross-border interactions were expected to drive the growth of the corporates, going ahead, which could possibly lead to failures and insolvencies with cross-border elements.

“With a rapidly transforming economy, comes the need for rapidly transforming institutions that support its growth,” said Mittal. “Once enacted, the cross-border framework will provide a robust, principle-based framework that Indian and foreign stakeholders can involve for resolving cross-border insolvency situations swiftly, and in a more efficient manner.”

Law.asia subscripton ad red 2022