in

283 Companies Declared Insolvent After the Announcement of Nationwide Lockdown Last Year

What is the Insolvency and Bankruptcy Code

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Moreover, the government temporarily rescinded the initiation of cirp under section 7, 9 and 10 of the code for six months or such a further period not exceeding one year from march 25, 2020.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.

What do you think?

65213 points
Upvote Downvote

Written by Ritik Gupta

His name is Ritik Gupta; currently pursuing law. He has always kept pride as his everything. He deems writing as not like any other hobby but a reflection of one’s intellectuality. He likes to research on the parasitic problems and then lay them down in such a means that can be of assistance to the society. He just not studies law but treats it a controversial weapon to defeat the wrong.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Loading…

0

Tata Group and SpiceJet shortlisted for Air India Bids

Government exited Tata Communications Ltd. by selling about 26% stake in the company