“As on September 30, 2022, the creditors have realized Rs 2.43 lakh crore under the resolution plans.
“The fair value of assets available with these CDs when they entered CIRP was estimated at Rs 2.14 lakh crore and liquidation value of Rs 1.37 lakh crore against the total claims of creditors of Rs 7.91 lakh crore,” it said. Told.
The newspaper said creditors have realized 177.55 per cent of the liquidation value and 84 per cent of the fair value (based on 456 cases where fair value has been estimated). It added, “The haircut for creditors was less than 16 per cent in relation to the fair value of the assets, as against about 69 per cent relative to their admitted claims.”
As of September 2022, the report also states that 740 CIRPs have been withdrawn under the provisions of Section 12A of the Insolvency and Bankruptcy Code.
Further, the report also pointed out that 64 per cent of the ongoing CIRPs have taken more than 270 days beyond the time limit permissible under the IBC.
Delay in CIPR, which is a time bound process, has become an issue. The Insolvency and Bankruptcy Code (IBC) mandates a CIRP to be completed within a time limit of 180 days from the date of admission of the application.
Under the request of the resolution professional of the company, the NCLT has the right to extend the period for another 90 days.
However, it is also mandated that the CIRP be completed with a time limit for resolution of 330 days, including the time taken for litigation.
Delays have been caused by litigations, shortage of manpower in National Company Law Tribunal (NCLT) benches, infrastructure crisis and pandemic-induced disruptions, which have adversely affected the envisaged time-bound resolution process.
Earlier this month, the government appointed a total of 15 judicial and technical members to the National Company Law Tribunal (NCLT), which is facing a shortage of judges.
The NCLT has a total of 28 benches with a sanctioned strength of 63 members. It comprises 31 each from the judicial and administrative sides along with its president, who heads the principal bench in New Delhi.