Recently, the rule maker and regulator, the Ministry of Corporate Affairs, observed the seventh foundation of the Insolvency and Bankruptcy Board of India (IBBI) where the Ministry of Corporate Affairs Secretary Manoj Govil said the speed of resolving debt under the Insolvency and Bankruptcy Code was increasing steadily. He also added that it is expected the number of corporate rescues of up to 300 cases will be resolved this financial year. The number is expected to almost double this financial year which was 180 in the last financial year. Since the secretary of the Ministry of Corporate Affairs said the pace of debt resolution under IBC was increasing steadily, people have been keenly following the corporate debt rescue cases that are expected to go up to 300 cases this financial year. Keep reading this article for more details and updates.
Will Bankruptcy Cases up to 300 be resolved?
A senior government official said on the seventh foundation day of the Insolvency and Bankruptcy Board of India that the debt resolution capacity under IBC should be stepped up by over three-fold to handle over 1000 cases in a financial year. Manoj Govil said 300 cases in a financial year is a large number but the question is if it should be sufficient as a study had depicted that usually about 5000 new bankruptcy cases are being filed every year.
Ministry of Corporate Affairs secretary Manoj Govil added, “While 300 is good, it is not sufficient to unclog the pipeline of pending cases. We should have the capacity to handle the resolution of 1,000 cases. This number could go up and down depending on the economic climate,” During the 7th anniversary of IBBI, Manoj Govil asserted around 90 percent of the positions at NCLAT (National Company Law Appellate Tribunal) had been filled and the rest were in midway. Continue reading this article for more details.
Majon Govil further added, “We are looking closely at the law and processes. The government is also considering proposals for amendments to the Insolvency and Bankruptcy Code (IBC). The aim of all the discussions is to bring down delays,” Kindly note that in FY2023-23, an 80 percent increase over the last year saw 180 cases being resolved. Till August this year, a total of 135 bankruptcy cases had been solved, said IBBI. The government is inter-ministerial discussing to be a signatory to the UNCITRAL (United Nations Commission on International Trade Law) for resolving cross-border bankruptcy insolvency cases. Stay tuned to this website.