Liquidations under IBC in Q2 jump, new applications remain subdued

The number of liquidations under the Insolvency and Bankruptcy Code (IBC) in the July-September period of this fiscal year (FY21) saw a jump, more than doubling compared to the previous quarter figures, even as admission of new applications remained subdued at almost the same level as April-June 2020.

Almost three-fourth of the ongoing insolvency processes have crossed the 270-day time limit and nearly 60 per cent of total ongoing liquidations have crossed the one-year deadline.

Critics of the IBC have often pointed out that the delays in admission, resolution and liquidation might be making it an unattractive proposition.

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