Lok Sabha Question No. 3667 (UNSTARRED), answered on 2021-12-20
Subject: Bankrupt Companies
Ministry: CORPORATE AFFAIRS
Asked by: Jagdambika Pal

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 3667 ANSWERED ON MONDAY THE 20 TH  DECEMBER, 2021 AGRAHAYANA 29, 1943 (SAKA)

## BANKRUPT COMPANIES QUESTION

3667. SHRI JAGDAMBIKA PAL:

Will the Minister of CORPORATE AFFAIRS

be pleased to state:

(a)  whether the Government has data on how many companies from the State of Uttar Pradesh have declared themselves bankrupt post-lockdown due to Covid-19;

(b) if so, the details thereof;

(c) the details of the cases resolved under the newly established method of insolvency i.e.; Pre-packaged Insolvency Resolution Process (PIRP) of the Insolvency and Bankruptcy Code, till date, along with the amount of claims resolved under these cases;

(d) the number of companies from the State of Uttar Pradesh who have filed for Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code in 2020, so far;

(e) whether there is any usual delay in the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code; and

(f)  if  so,  the  reason  therefor  and  the  steps  taken  by  the  Government  to resolve the issue of delay in resolution?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND  PROGRAMME  IMPLEMENTATION;  MINISTER  OF  STATE  (INDEPENDENT CHARGE)  OF  THE  MINISTRY  OF  PLANNING;  AND  MINISTER  OF  STATE  IN  THE MINISTRY OF CORPORATE AFFAIRS [RAO INDERJIT SINGH] (a)  &  (b):  The  initiation  of  corporate  insolvency  resolution  process  (CIRP)  under sections 7, 9 and 10 of the Insolvency and Bankruptcy Code, 2016 (the Code/IBC) was suspended by the Insolvency and Bankruptcy Code (Second Amendment) Act, 2020 for  defaults  arising  on  or  after  25 th   March,  2020  till  24 th   March,  2021.  The defaults arising during the said suspension will remain non est for the purpose of initiation of CIRP under the Code. (c): Application for pre-packaged insolvency resolution process in respect of 1(one) company  has  been  admitted  by  the  Adjudicating  Authority  and  is  ongoing.  No resolution plans have been approved under this framework, so far. (d): According to data available with the Insolvency and Bankruptcy Board of India (IBBI), 33 (thirty-three) companies having registered office in State of Uttar Pradesh been admitted into CIRP during January 2020 to November 2021. (e) and (f): Insolvency resolution process under the IBC is market driven and the outcome depends on market forces. Further, the time taken for resolution depends on  several  factors,  including  the  nature  of  business,  business  cycles,  market sentiments and marketing effort. Government is  taking  all  steps  to  strengthen  the  NCLT,  in  order  to  reduce  the delays in disposal of cases. Five new Benches of NCLT have been announced during year 2018 and 2019 at Jaipur, Cuttack, Kochi, Indore and Amaravati. Vacant posts of Members in NCLT are being filled up regularly. Government has appointed 19 new  Members  in  NCLT  recently.  For  capacity  building  of  Members,  regular colloquiums are being held. e-Court Project is also being implemented by National Informatics Centre (NIC) for all the benches of NCLT. Further, to monitor delayed insolvency  resolution  processes,  IBBI  has  introduced  a  Form  to  be  filed  by  the resolution professionals on monthly basis.

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