The Survey noted that the number of outstanding corporate insolvency cases under the IBC declined between March and December due to resolution of some pending cases and the suspension of insolvency initiation. (Source: FE)The Economic Survey 2020-21 said that the Insolvency and Bankruptcy Code (IBC) is facing significant challenges due to litigation by various parties and a lack of adequate judicial infrastructure.
The Survey noted that the legal system was the single most important method of dispute resolution and that India was still lagging on a number of key indicators on resolution, including time taken for enforcement of contracts and cost of litigation.
The government had in June last suspended the initiation of insolvency proceedings against companies for defaults occurring after March 25, 2020, with the aim of preventing otherwise viable businesses from facing liquidation due to the economic downturn caused by the Covid-19 pandemic.
The Survey noted that the number of outstanding corporate insolvency cases under the IBC declined between March and December due to resolution of some pending cases and the suspension of insolvency initiation.
Subscriber Only Stories
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
First published on: 30-01-2021 at 01:27:33 am
Subscribers Reading Now
Most Popular
Attack on Army camp
A last call before line got cut, an unanswered call on fateful morning – tale of kin left behind
Latest News
Faridabad: Two students picked up for bullying and suicide of teen
Arvind Kejriwal questions Centre’s finances, FM says he’s trying to fan ‘worry…fear’
TMC protests too much, say rivals as its leaders declare: ‘Not all of us thieves’
ED summons eight Bengal IPS officers in coal smuggling case
598 fresh Covid cases, 4 deaths
CPM, BJP & Cong target Trinamool: ‘Their leaders feel comfortable in jail’
School jobs scam: CBI gets seven-day custody of former SSC chairman Saha, ex-adviser Sinha
On flight to Kabul, homecoming stories a year after the takeover
Staring at looming drought, Jharkhand farmers ask: What will we grow and what will we eat?
Bengaluru woman goes to Delhi HC to stop friend’s euthanasia trip to Europe
Couple ‘stabs 4 of their family to death,’ woman held
Cattle Smuggling Case: Anubrata Mondal, TMC strongman and artful dodger, now in CBI net
