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admission. Only a few companies, who fail to address the distress in any of Table 13: Status of filed applications for initiation of Insolvency
earlier stages, pass through the entire resolution process. At this stage, the Resolution Process of PGs to CDs (Number)
value of the company is substantially eroded, and hence some of them are
Period No. of Before appoint- No. of After appointment No. of
rescued, and others liquidated. The recovery may be low at this stage, but appli- ment of RP cases of RP cases
recovery in early stages of distress is much higher, and it is primarily because cations No. of No. of where No. of No. of Admit-
filed RPs have ted
of the Code. Appli- Applica- Appli- Applica-
cations tions dis- been cations tions dis-
(e) The Code endeavours to close the various processes at the earliest. It with- missed/ appoint- with- missed/
ed
prescribes timelines for some of them. The 553 CIRPs, which have yielded drawn rejected drawn rejected
resolution plans by the end of September, 2022 took on average 473 days 2019 - 20 23 0 0 2 0 0 0
(after excluding the time excluded by the AA) for conclusion of process. 2020 - 21 240 6 1 34 2 1 9
Similarly, the 1807 CIRPs, which ended up in orders for liquidation, took on 2021 - 22 865 14 10 330 0 6 24
average 437 days for conclusion. Further, 429 liquidation processes, which Apr - Jun, 2022 149 3 14 134 2 4 65
KDYH FORVHG E\ VXEPLVVLRQ RI ÀQDO UHSRUWV WRRN RQ DYHUDJH GD\V IRU Jul - Sep, 2022 126 0 5 97 3 0 25
closure. Similarly, 814 voluntary liquidation processes, which have closed by Total 1403 23 30 597 7 11 123
VXEPLVVLRQ RI ÀQDO UHSRUWV WRRN RQ DYHUDJH GD\V IRU FORVXUH
(f) Till September, 2022, a total of 553 CIRPs have yielded resolution plans. Bankruptcy Process
The cost details are available in respect of 529 CIRPs. The cost works out on On failure of the insolvency resolution process, an application for initiation
average 1.12% of liquidation value and 0.61% of realisable value.
RI WKH EDQNUXSWF\ SURFHVV FDQ EH ÀOHG HLWKHU E\ WKH 3* RU E\ FUHGLWRU V
Individual Processes within three months from the date of the order passed by the AA in three
scenarios- (a) rejection of an application for initiation of insolvency process;
(b) rejection of the repayment plan; or (c) premature closure of repayment
Insolvency Resolution Process
plan.
The provisions relating to insolvency resolution and bankruptcy relating to $V SHU WKH LQIRUPDWLRQ DYDLODEOH ZLWK WKH %RDUG WKH ÀUVW DSSOLFDWLRQ IRU
PGs to CDs came into force on December 1, 2019. As per the information
initiation of the bankruptcy process of a PG namely Mr. Rohit Nath has been
received from the applicants, IPs, and data collected from various benches of ÀOHG EHIRUH '57 &KHQQDL
NCLT and Debt Recovery Tribunal (DRT), 1403 applications have since been
ÀOHG DV RI 6HSWHPEHU 2XW RI WKHP DSSOLFDWLRQV KDYH EHHQ Service Providers
ÀOHG E\ WKH GHEWRUV DQG DSSOLFDWLRQV E\ WKH FUHGLWRUV XQGHU VHFWLRQV
DQG RI WKH &RGH UHVSHFWLYHO\ $PRQJ WKHP KDYH EHHQ ÀOHG EHIRUH Insolvency Professionals
GLIIHUHQW EHQFKHV RI '57 DQG KDYH EHHQ ÀOHG EHIRUH GLIIHUHQW EHQFKHV
of NCLT (Table 12). An individual, who is enrolled with an IPA as a professional member and has
WKH UHTXLUHG TXDOLÀFDWLRQ DQG H[SHULHQFH DQG SDVVHG WKH /LPLWHG ,QVROYHQF\
Table 12: Insolvency Resolution of Personal Guarantors Examination, is registered as an IP. An IP needs an AFA to take up an
assignment under the Code with effect from January 1, 2020.
(Amount in ` crore)
The IBBI made available an online facility from November 16, 2019 to enable
Period Applications filed by Total Adjudicating
Authority an IP to make an application for issuance / renewal of AFA to the concerned
Debtors (u/s 94) Creditors (u/s 95) IPA. Thereafter, an IPA processes such applications electronically. The details
No. Debt Num- Debt No. Debt NCLT DRT of IPs registered as on September 30, 2022 and AFAs held by them, IPA-
Amount ber Amount Amount wise, is presented in Table 14.
2019 - 20 3 49.66 20 3256.87 23 3306.53 22 1
Table 14: Registered IPs and AFAs as on September 30, 2022
2020 - 21 20 2485.94 220 36760.35 240 39246.29 234 6
2021 - 22 82 3039.20 783 59717.90 865 62757.10 854 11 City / Region Registered IPs IPs having AFAs
Apr - Jun, 15 698.73 134 5721.66 149 6420.39 149 0 IIIPI ICSI IPA Total IIIPI ICSI IPA Total
2022 IIP ICAI IIP ICAI
Jul - Sep, 16 942.82 110 12165.91 126 13108.73 126 0 New Delhi 474 278 91 843 282 183 59 524
2022
Rest of Northern 499 211 73 783 283 129 39 451
Total 136 7216.35 1267 117622.69 1403 124839.04 1385 18 Region
Notes: The data are provisional. These are getting revised on continuous basis as further information Mumbai 417 150 41 608 239 84 25 348
is received.
Rest of Western 353 127 48 528 230 88 23 341
Debt data not available in 267 cases Region
Chennai 152 88 20 260 89 51 14 154
Of the 1403 applications, 53 applications have been withdrawn / rejected
/ dismissed before the appointment of RP and RPs have been appointed in Rest of Southern 428 226 86 740 247 138 61 446
Region
597 cases. After the appointment of RP, 18 cases have been withdrawn /
rejected / dismissed and 123 cases have been admitted. The details are given Kolkata 229 42 24 295 149 22 14 185
in Table 13. Rest of Eastern 79 28 11 118 44 16 8 68
Region
Total Registered 2631 1150 394 4175 1563 711 243 2517

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11/15/2022 12:24:50 PM
IBBI newsletter.indd 19
IBBI newsletter.indd 19 11/15/2022 12:24:50 PM