New Delhi, Mar 17: As many as 40,943 applications were filed under the the Insolvency and Bankruptcy Code (IBC), of which 28,818 applications involving Rs 10 lakh crore were resolved even before admission, Union Minister of State for Corporate Affairs Harsh Malhotra said in Lok Sabha on Monday.
He also said that the introduction of the IBC in 2016 significantly benefited India, improving its global rank by 56 places to reach 52 in 2019 from 108 in 2018.
“Under IBC, 40,943 applications were filed of which 28,818 applications were resolved even before admission. This itself is a big achievement. Of those resolved, the total amount involved was around Rs 10 lakh crore. Among those which are pending or under trial, 1,119 have gone for resolution and resolved,” he said.
The minister said many reforms have been brought with regards to home buyers.
“If any big builder or a consumer goes to the National Company Law Tribunal (NCLT), which is a quasi-judicial body, we have ensured resolution tower-to-tower basis. We have ensured possession of home buyers even during proceedings,” he said.
Malhotra said as per information provided by NCLT, the number of cases pending under the Companies Act were 8,133 and under the IBC were 12,351 as on December 31,2024.
He said there were several reasons for the pendency of cases in NCLT, which depends on circumstances and complexity of each case, nature of evidence, number of Interlocutory Applications (IA), stay by the higher courts in many cases, cooperation of stake holders and adjournments.
“To facilitate expeditious disposal, the government is taking necessary steps on an ongoing basis, which include implementation of e-court and hybrid court project, regular colloquiums for capacity building of members, provisions of infrastructure, filling up of vacancies, etc,” he said.
The minister said the government has taken a number of initiatives under Ease of Doing Business (EoDB), which are aimed at creating a conducive business environment.
“As a part of the above, Doing Business Report (DBR) 2019 was published by the World Bank. India’s rank in resolving insolvency in the above report was 52,” he said.
The World Bank discontinued publishing its Doing Business Report (DBR) in September 2021, with the last report released in October 2019.
Malhotra said the B-Ready (Business Ready) project is a new initiative by the World Bank to replace the earlier Doing Business rankings.
“The B-Ready assessment focuses on various stages of a business lifecycle, including starting a business, dealing with construction permits and resolving insolvency. The first B-Ready report was launched on October 3rd, 2024, and India is covered in the third phase of the project. The report covering India is expected in September 2026,” he said.
The IBC 2016 has been instrumental in maintaining a minimal backlog of insolvency cases, thereby improving India’s ease of doing business and enhancing its overall investment climate, he said. (PTI)
