4,300 insolvency cases filed at NCLT
After formation of National Company Law Tribunal, one and half year ago, over 4,300 cases have been filed at its various benches for resolution process, according to the Reserve Bank data.
The Insolvency and Bankruptcy Code came into existence with the enactment of the Insolvency and Bankruptcy Code (IBC) in May 2016, replacing the Company Law Board regime.
“As of November 2017, over 4,300 applications under the corporate insolvency resolution process (CIRP) were filed in the various benches of NCLT,” the RBI said in its Financial Stability Report (FSR) released recently. Of these, more than 500 applications seeking admission for insolvency proceedings were rejected, dismissed or withdrawn, it added.
The report said around 470 cases admitted by the NCLT are at various stages of the insolvency process.
In June this year, the Reserve Bank had asked banks to refer the 12 largest dead accounts totaling about 25 per cent of the gross NPAs of the banking system or worth about Rs 2.5 trillion to the NCLT for resolution. And 11 of them are in NCLT now.