Run the company or keep going, know what the insolvency code says

The Insolvency and Bankruptcy Code ie IBC had brought a similar message for businessmen.

The Insolvency and Bankruptcy Code ie IBC had brought a similar message for businessmen. The objectives were also clear. Those who are unable to run the business, they can close the business, the assets stuck in the stalled business can be used and the bad loans of the banks can be recovered.

businessmen with bad intentions (businessmen) Insolvency and Bankruptcy Code ie IBC had brought a similar message for (Insolvency and Bankruptcy code), The objectives were also clear. Those who are unable to run the business, they can close the business, the properties stuck in the stalled business (Assets) can be used and banks ,Banks, To recover the bad loans of. But due to the slowdown in the economy and delays due to court rounds, the sheen of this law is now fading. The return of bad loans of banks was only one third. Rao Inderjit Singh, Minister of State, Ministry of Corporate Affairs, recently told the Parliament that a total of 457 cases have been settled under IBC till December 31, 2021.

According to the available data of 444 companies, total claims of Rs 7.54 lakh crore were submitted. Out of this, banks have got 2.5 lakh crore rupees in recovery.

The period from October to December 2021 is the worst for businesses

The quarter from October to December 2021 was the worst. The creditors got only 13.41 per cent of the amount. A total of Rs 32,861.90 crore claims have been presented, out of which only Rs 4406.76 crore could be received.

Chartered accountant Ankit Gupta says that there are two major reasons for the slowdown in recovery. First, the delay in settlement of claims due to court rounds and secondly due to the slowdown in the economy has also affected the capacity of companies. Due to which they are not showing interest in buying the stuck companies.

According to the rules, the insolvency process of a company has to be completed within 270 days. But statistics show that this time limit is exceeded in 73 percent of the cases. Bank officials say that as soon as the application is submitted in NCLT, the process of delay starts in the process.

The eyes of big companies are in front. The case of Supertech, which was declared bankrupt just a week ago, was pending since December 2019. The case of Jaiprakash Associate is registered under IBC since September 2018. Jaypee Infra, on which the banking regulator RBI itself had directed IBC to take action, this matter is pending for the last 5 years.

It is this delay due to which chapters of failure are being added to the success story of IBC and its attractiveness is decreasing.

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