The Insolvency and Bankruptcy Code (IBC) has resolved cases worth Rs 1.58 lakh crore till December 2019 and the resolution time for each case has reduced from 4.3 years to less that a year, the Economic Survey 2019-20 has noted [PDF].
As per the survey each case takes around 340 days to be resolved, which includes the litigation period. It translates to a sharp decline of almost 340 per cent from the earlier average time period of 4.3 years.
In this financial year 2019-20 a total of Rs 7,331.90 was realised in the first quarter, Rs 27,534.48 crore in the second quarter and Rs 1,900.52 in the third quarter respectively. This has brought the total resolved figure to Rs 1.58 crore till Q3 of 2019.
The survey states that the resolution under IBC has been much higher as compared to the resolution channels which were earlier employed.
The survey adds that three years since its implementation the IBC boasts of a strong ecosystem, comprising the Adjudicating Authority, the IBBI, three insolvency professional agencies, 11 registered valuer organisations, 2,374 registered valuers and 2,911 insolvency professionals.
Both debtors and creditors are choosing to initiate IBC proceedings and actions have extended to 2,542 corporate organisations until now.
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