Due to such cases, the average time taken for resolution, and even liquidation, is slowly rising (Chart 4). The data also shows that it is better to admit a company in the IBC
process while its in operation, as the recovery rate is better (Chart 5A). A third of the companies not resulting in resolution were already defunct, shows Chart 5B.
Among manufacturing companies that went to the National Company Law Tribunal (NCLT), chemicals and metal firms witnessed more resolutions. Companies in the labour intensive (employment friendly) leather and textile sectors mostly get liquidated (Chart 6).
In services, companies in the real estate and construction sector go for appeal or review the most (Chart 7).
A resolution is more likely in the power and hospitality sector companies.
StatsGuru is a weekly feature. Every Monday, Business Standard guides you through the numbers you need to know to make sense of the headlines; Source: IBBI, EY India, Compiled by BS Research Bureau
Illustration: Ajay Mohanty