In six months, 285 companies were pushed to NCLT, with recovery falling to 35.8 percent
MUMBAI: Lenders have taken eight companies to bankruptcy tribunals in the six months from April to September after a year-long moratorium on bankruptcy proceedings was lifted in March 2011 due to the Corona epidemic. In the September quarter alone, 12 companies were taken to the National Company Law Tribunal (NSB) batch for default. Although no major companies have gone bankrupt during this period, the recovery of financial creditors has slowed to 8.5% in September from 3% in the previous year. This is slightly lower than the June quarter recovery, but has been steadily declining since September 2020. This figure is even lower than the pre-Coro average ratio of 20%. According to the Insolvency and Bankruptcy Board of India (IBBI), the total number of companies accepted for bankruptcy proceedings so far has risen to 206. Out of which 3% cases have been disposed off and 5% cases are still under process. Only 15% of companies have had a successful resolution, meaning they have found a...