More than 60% of insolvency proceedings led to liquidation in Sep quarter

Liquidations were only one-third of total cases closed in the previous quarter

More than 60 per cent of the corporate insolvency resolution processes (CIRPs) that achieved closure in July-September 2020 have ended up in liquidation. The data by the Insolvency and Bankruptcy Board of India (IBBI) shows that 68 of the 112 cases closed during this period went into liquidation. While a significant number of cases had faced liquidation in the previous quarter too, it was still only one-third of the total cases that got closure. Cases of liquidation have been on the rise, even as the initiation of the CIRP under the Insolvency and Bankruptcy Code (IBC) has been under suspension