New corporate bankruptcy cases have dropped since the moratorium
Three high-profile bankruptcy cases were settled in the June quarter MUMBAI: The number of new corporate insolvency cases has dropped since the moratorium was removed during the first quarter of the current financial year, with an average of 10 new bankruptcy cases being filed every week. It may be mentioned that, in June 2020, the Central Government had banned the filing of new bankruptcy proceedings in case of any payment default for a period of 12 months from March 3, 2020. According to the latest figures from the Insolvency and Bankruptcy Board of India (IBBI), 18 new bankruptcy cases were filed between April and June 2021. The pace of bankruptcy and insolvency proceedings is very slow as many new cases were filed during the previous week. Prior to the Corona epidemic, between March 2016 and March 2020, about six bankruptcy cases were filed each week. The June quarter this year not only saw a decline in filing of new bankruptcy cases but also saw some encouraging resolution fi...