However, since the measure of the effectiveness of the INC is the ratio of liquidation to resolution, thanks to several initiatives to improve the outcomes, this ratio has improved from 5.06 in FY18 to 1.32 during the first three quarter of the current fiscal, he said, adding but when it comes to the average time taken for resolution/liquidation, this continues to be an pain area, said Sanjay Agarwal, a senior director with the agency.
After slowing during the pandemic, the number of insolvency cases increased around 11% in Q2 but despite the increase, the number of cases admitted remains lower, and the number of ongoing cases are below 2,000 now.
In Q3, around 140 cases were initiated as cases initiated by both corporate debtors and operational creditors has come down significantly over time.
So far over 8,100 companies have been admitted to various NCLTs since the IBC came into force from May 2106, of which financial creditors’ cases stood at 3,810, and those by operational creditors at 3,861.
Though there was an –on-year increase of 11% in new admission in Q3, the number of cases admitted continues to be lower compared to earlier quarters and has continued to remain less than 1,000 for the trailing 12 months period.
