Ritik Gupta
National company law tribunals (nclt) across the country admitted a total of 283 companies into insolvency amidst the pandemic after the proclamation of the nationwide lockdown Last year.
In a written reply to the Lok Sabha, the Minister of state for corporate affairs, Anurag Thakur, also said that during April 1, 2020, and December 31, 2020, a total of 76 Corporate insolvency resolution processes (cirp) ended in resolution, 128 cirps were closed due to withdrawal or appeal or
Settlement and 189 companies went into liquidation.
Moreover, the government temporarily rescinded the initiation of cirp under section 7, 9 and 10 of the code for six months or such a further period not exceeding one year from march 25, 2020.
The advantage of the suspension pertains to all those defaults of the corporate debtor that arise from march 25, 2020, and till the end of the period of rest. Such bankruptcies arising from march 25, 2020, and till completion of the suspension period will persist as ‘non-rest for initiation of cirp under the code as a permanent carve-out.
The 283 bankruptcies announced amid the pandemic pertain to defaults made before March 25, 2020.
Thakur told the house that 30 corporate persons were dissolved or sold as a going
Concern or undergone compromise or arrangement under section 230 of companies
Act, 2013 under the liquidation process. Further, 59 corporate persons were dissolved under voluntary liquidation process.
