The number of corporate insolvency resolution processes (CIRPs) admitted by the National Company Law Tribunal (NCLT) dropped by a massive 83% during the April-June quarter on a sequential basis.
While 435 cases were admitted in the final quarter of the last fiscal, only 76 cases were admitted during the first quarter of the current fiscal, according to data from the Insolvency and Bankruptcy Board of India (IBBI).
The drop was largely due to the ordinance suspending initiation of CIRP from March 25 onward, to protect companies from the impact of the pandemic and ensuing lockdown.
During the June quarter, 12 CIRPs ended in the approval of resolution plans while 24 resulted in the liquidation of the corporate debtor.
In comparison, the NCLT ad…
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