NEW DELHI: A total 1,807 cases ended in liquidation till September, 2022 under the Insolvency and Bankruptcy Code, 2016 (IBC/Code), said Minister of State, Corporate Affairs, Rao Inderjit Singh in a written reply in the Lok Sabha on Monday.
Out of these, the final reports have been submitted in 429 cases and 1,378 are undergoing the liquidation process
On reasons behind the delay in resolutions, the reply said, "There are delays in resolution and submission of final report by the liquidator due to reasons like problem in taking control of assets of the Corporate Debtor, realization of assets, excessive litigation, pending avoidance transaction applications, non-cooperation from promoters/ex-directors of the Corporate Debtor (CD), relinquishment of security interest."
Regulation 35 of the Insolvency and Bankruptcy Board of India (IBBI) (Liquidation Process) Regulations, 2016 was amended in October, 2018 to provide that the liquidator may consider the valuation arrived under Corporate Insolvency Resolution Process (CIRP).
Further, vide amendments made in September, 2022, the liquidator has been mandated to mandatorily consult the stakeholders' consultation committee, to undertake fresh valuation during liquidation, saif the reply.
"IBBI has also provided an electronic platform on its website for hosting public notices of auction of liquidation assets. A centralised platform hosting all public notices of auctions of liquidation assets improves visibility for the assets being sold and shall lead to better realisation and expedite the process.
The Ministry in its reply informed that Section 52 of Code read with Regulation 37 of the Liquidation Regulations provides for mechanism and manner for relinquishment of security interest by a secured creditor in liquidation proceedings.