Since the National Company Law Tribunal (NCLT) was set up 18 months ago, more than 4,300 cases have been filed at its various benches for resolution process, according to the Reserve Bank of India (RBI) data.
Insolvency and Bankruptcy Code (IBC) came into existence in May 2016, replacing the Company Law Board regime. “As of November 2017, over 4,300 applications under the corporate insolvency resolution process (CIRP) were filed in the various benches of NCLT,” the RBI said in its Financial Stability Report (FSR) released over the weekend.
Of these, more than 500 applications, seeking admission for insolvency proceedings, were rejected, dismissed or withdrawn, it added.
The report said about 470 cases admitted by the NCLT were at various stages of the insolvency process.
In June this year, the RBI had asked banks to refer the 12 largest accounts, totalling about 25% of the gross NPAs of the banking system or worth about ₹2.5 trillion, to the NCLT for resolution. Now, 11 of them are in NCLT.
In August, the RBI gave the banks a list of a further 28 large accounts to be resolved by December 13, failing which those accounts would have to be referred to the NCLT by December 31.
These accounts constitute another 15% of the system-wide bad loans and of these, banks have sent as many as 25 to the NCLT.
