Out of 4531 cases filed in bankruptcy court till June, 2859 cases were settled
New Delhi: As of June this year, about 5 per cent or 12 cases of bankruptcy have been filed under the Bankruptcy Act, but in most of them, the financial value has declined even before the corporate insolvency resolution process begins. By the end of June, a total of 21 CIRPs (Corporate Insolvency Resolution Process) had been initiated, of which eight were closed. According to the latest quarterly newsletter of the Insolvency and Bankruptcy Board of India (IBBI), 1,3 of these CIRPs went into liquidation, while resolution plans for eight cases were approved. The IBBI said about 3 per cent of the closed CIRP went into liquidation, while a resolution plan was approved for 12 per cent. The circular further said that however, 6 per cent of CIRPs (1,011 out of 1,311) that went into liquidation were previously in the Board of Industrial and Financial Reconstruction (BIFR) or were inactive. The economic value of most of these corporate debtors was almost completely destroyed before they came...