The Insolvency and Bankruptcy Board of India (IBBI) has recently celebrated its 6th Annual Day. The Insolvency and Bankruptcy Code, 2016 (IBC) aims to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner for maximization of the value of assets, to promote entrepreneurship, availability of credit and to balance the interests of all the stakeholders. The IBC has created a strong ecosystem in the insolvency regime which is expanding in terms of the number of service providers and the number of cases using the IBC as a rescue mechanism for distressed firms.
There are fifteen numbers of NCLTs (National Company Law Tribunals) functioning in the country where the applicant can file an Application under sections 7, 9 or 10 of the Insolvency and Bankruptcy Code, 2016. There are two National Company Law Appellate Tribunals (NCLATs) actively participated in their role.
NCLTs/NCLATs out of 21,262 admitted cases, adjudicated a large number of 17,801 cases under section 9 of IBC till 31st August 2022 where 16,162 cases have been disposed of. There have been out of 9,429 admitted cases, adjudicated only 7,530 cases under section 7 till 31st August 2022 where 5,990 cases have been disposed of. And a little number out of 512 admitted cases, it has adjudicated 481 cases so far under section 10 whereas 291 cases have been disposed of till 31st August 2022. Thus a total number of 31,203 admitted cases a large number of 25,812 cases have been adjudicated whereas 22,443 cases have been disposed of till 31st August 2022.
The performance of the National Company Law Tribunals and the National Company Law Appellate Tribunals can be evaluated easily if we see the success rate of adjudicated cases under sections 7, 9 or 10 are 79.86%, 83.72% and 93.94% respectively.
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