Almost three-fourth of the ongoing insolvency processes have crossed the 270-day time limit
The number of liquidations under the Insolvency and Bankruptcy Code
(IBC) in the July-September period of this fiscal year (FY21) saw a jump, more than doubling compared to the previous quarter figures, even as admission of new applications remained subdued at almost the same level as April-June 2020.
Almost three-fourth of the ongoing insolvency processes have crossed the 270-day time limit and nearly 60 per cent of total ongoing liquidations have crossed the one-year deadline.
Critics of the IBC
have often pointed out that the delays in admission, resolution and liquidation
might be making it an unattractive proposition.
The corporate affairs ministry is looking to fix some of these issues by adding more Benches and also finalising a system of pre-packaged scheme for resolution for faster disposal of cases.