Failure to resolve the cases under the bankruptcy code within the new time limit

Mumbai, Ta. October 31, 2019, Thursday

Data obtained from the Insolvency and Bankership Code (IBC) show that it took more than 3 days to complete the 3 Corporate Insolvency Resolution Plans (CIRPs). Under the IBC, the government has increased the time from the solution process to 6 days in July, after the picture was found that the solution was delayed.

According to the information received, as of September 1, there were 3 plans that took an average of 3 days to resolve. In some cases, the solution process was lengthened by various stakeholders to take the case to litigation.

According to the data of September 7, 3 of the ongoing CIRP cases took more than 3 days and 3 took more than 3 days. The total number of cases filed was 5.

The NCLT structure is being questioned as the cases that are entering the NCLT are not being completed on time.

The average duration of the solution has been up to 7 days, but in the first list of the Reserve Bank for IBC cases, some cases like Essar Steel and Bhushan Power have taken more than two years.

Timely resolution of cases leading to insolvency is one of the main goals of IBC. But the solution is being delayed by not having time. Sources in the Insolvency and Bankership Board of India said that the process of setting up a new court is underway to expedite settlement of cases under IBC.