The road to enter bankruptcy court is now 7,000 companies long
₹9.3 trillion had been withdrawn over a period before admission, indicating settlements between creditors and businesses. Policymakers expect that fewer cases may be settled before the admission stage, given that the government had in 2020 raised the payment default threshold for initiating IBC proceedings.
The government and IBBI have been trying to improve the outcomes of debt resolution under IBC, including speeding up admission of cases and shortening the time taken in clearing a corporate turnaround plan. While a new bill to amend IBC is still under consultation within the government, IBBI has been streamlining the process through its regulations.
The government started the process of appointing 15 members to tribunals last year and another 21 members this year to fill vacancies in various benches of NCLT. Besides the principal bench in the capital, the tribunal has 15 other benches across the country.
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