The number of corporate insolvency cases admitted in tribunals stayed low at 164 in the three months ended 30 June despite the governments decision to lift the one-year moratorium on creditor action against defaulters in March.
This is expected to offer relief to the government, which decided to lift the suspension on 25 March amid concerns about widespread financial stress. The corporate affairs ministry assessed that an increase in the payment default threshold from 1 lakh to 1 crore and a new alternative resolution scheme for small companiescalled the pre-pack schemewould check any sudden rise in insolvency cases.
At the end of June, 4,540 bankruptcy cases were admitted in tribunals, an increase from 4,376 at the end of March, acc…
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