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Informist, Saturday, Dec. 7, 2024

 

NEW DELHI – The integrated technology platform for resolutions under the Insolvency and Bankruptcy Code, 2016, has been approved and should be "up and running" in the next year or year and a half, said Ravi Mital, chairperson of the Insolvency and Bankruptcy Board of India.

 

 

This platform alone will improve the productivity and reduce delays under the bankruptcy code, Mittal said on Saturday at a conclave organised by IBBI and INSOL India in the national capital. 

 

The platform was first announced by Finance Minister Nirmala Sitharaman in the Budget for 2024-25 (Apr-Mar), presented in July. The aim of the integrated technology platform is to improve outcomes under the Insolvency and Bankruptcy Code to achieve consistency, transparency, timely processing and better oversight for all stakeholders.

 

The move was announced at a time when the corporate insolvency resolution process was taking over twice as long as the period prescribed under the code. As per an IBBI release in May, on average, the insolvency resolution process takes 679 days when the code says it should be completed within 330 days, including all extensions granted.

 

Mittal said that while IBBI was working on improving the overall resolution process, the large number of adversarial cases made it difficult to improve the admission process. "We are definitely taking time for admission. But that is only because our admission process is almost 99?versarial, while in the developed economies, it is 99% non-adversarial," Mittal said.

 

The insolvency and bankruptcy law has resolved more than 1,000 companies, resulting in direct recovery of over INR 3 trillion for creditors. In addition, 28,000 cases involving over INR 10 trillion have been disposed of, even prior to admission.  End

 

Reported by Shubham Rana

Edited by Avishek Dutta

 

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