Cases admitted in Q3FY21 20% of cases in Q3FY20

The number of cases admitted for Corporate Insolvency Resolution Processes (CIRPs) over the last 15 quarters has increased significantly, and has been generally increasing every quarter. However, the cases admitted slowed down in 9MFY21 (283 cases) compared with 1,517 cases admitted in 9MFY20.

It has been observed that the IBC has continued to gain in popularity, with over 4,000 companies being admitted and a significant number of these cases on a cumulative basis being filed by the operational creditors followed by the financial creditors.

The manufacturing sector accounts for the highest share at 41% of the overall cases, followed by the real estate (20%), construction (11%) and trading sectors (10%). The sectors have largely remained constant compared with the quarter ended March 2020.

Within the manufacturing domain, 'textile, leather & apparel products' and 'basic metals' both continue to have the largest cumulative number of cases admitted under the IBC in quarter ended December 2020.

Of the total 4,139 cases admitted into CIRP at the end of December 2020, 41% of the cases continue to remain in the resolution process against 57% as at the end of March 2020. 1,126 cases have ended into liquidation i.e. 27% of the total cases admitted.  

• Story : Shivani Sharma
• Design : Pragati Srivastava