The number of insolvency cases admitted by the bankruptcy court continued to stay elevated, with 369 companies alone admitted in the September quarter.
The March quarter of FY19 had seen the highest number (374) taken by the Benches of the National Company Law Tribunal (NCLT), revealed data by the Insolvency and Bankruptcy Board of India (IBBI). The number of firms to go for liquidation in Q2FY20 stood at 96.
Operational creditors have triggered 48.5 per cent of the corporate insolvency resolution processes (CIRPs) so far, followed by 43 per cent by financial creditors.
The Insolvency and bankruptcy code (IBC), under which cases are referred to the NCLT, is almost three years old now, during which the experience has been disappointing. Of the total number of cases admitted by the NCLT (2,542), only 6 per cent have yielded resolution. While 23 per cent have wound up in liquidation, close to 4 per cent have been withdrawn under Section 12A of the IBC. Almost 59 per cent are still under the resolution process.
Of the 1,497 cases still under CIRP, 35 per cent have exceeded the time prescribed under the IBC to wrap up the resolution process (270 days).