Accès libre

On the Effectiveness of Insolvency and Bankruptcy Code, 2016: Empirical Evidence From India

A Abhirami
A Abhirami
 et 
T Rahul
T Rahul
   | 31 déc. 2022
Law and Business's Cover Image
À propos de cet article
Article précédent
Article suivant
Citez
Article Category: Research Article
Publié en ligne: 31 déc. 2022
Pages: 20 - 34
DOI: https://doi.org/10.2478/law-2022-0003
Mots clés
© 2022 Abhirami A et al., published by Sciendo
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Figure 1

Trend in Corporate Insolvency Resolution Process.
Trend in Corporate Insolvency Resolution Process.

Figure 2

Distribution of stakeholder initiated CIRPs.
Distribution of stakeholder initiated CIRPs.

Figure 3

Recovery rates of different resolution mechanisms.
Recovery rates of different resolution mechanisms.

Figure 4

Resolution timelines for outstanding CIRPs.
Resolution timelines for outstanding CIRPs.

Figure 5

Gross NPAs to gross advances ratio, credit growth, and GDP growth.
Gross NPAs to gross advances ratio, credit growth, and GDP growth.

Figure 6

Trajectory of gross NPAs.
Trajectory of gross NPAs.

Figure 7

Trend in NPA slippages.
Trend in NPA slippages.

Figure 8

Performance of India in Resolving Insolvency as per the World Bank's Ease of Doing Business Rankings.
Performance of India in Resolving Insolvency as per the World Bank's Ease of Doing Business Rankings.

Figure 9

India's ranking in the World Bank's Ease of Doing Business Index.
India's ranking in the World Bank's Ease of Doing Business Index.

Gross NPAs as a percentage of gross advances in the Indian banking system.

As on 31 March Gross NPA (in Rs. Billion) Gross NPAs to Gross Advances Ratio (in %)
Scheduled commercial banks Public sector banks Private sector banks Foreign banks Small finance banks
2010 846.98 2.5 2.3 3.0 4.4 -
2011 979.73 2.4 2.3 2.5 2.6 -
2012 1,429.03 2.9 3.2 2.1 2.8 -
2013 1,940.53 3.2 3.6 1.8 3.0 -
2014 2,633.62 3.8 4.4 1.8 3.9 -
2015 3,233.35 4.3 5.0 2.1 3.2 -
2016 6,119.47 7.5 9.3 2.8 4.2 -
2017 7,917.91 9.3 11.7 4.1 4.0 -
2018 10,396.79 11.2 14.6 4.6 3.8 2.5
2019 9,364.74 9.1 11.6 5.3 3.0 1.8
2020 8,998.03 8.2 10.3 5.5 2.3 1.9
2021 8,377.71 7.3 9.1 4.9 2.4 5.4

Status of 12 large accounts (amounts in Rs. Billion).

S. No. Name of CD Claims of FCs dealt under resolution Realisation by claimants as a % of liquidation value Successful resolution applicant
Amount admitted Amount realised Realisation as % of claims
Completed
1 Electrosteel Steels Limited 131.75 53.2 40.38 183.45 Vedanta Ltd.
2 Bhushan Steel Limited 560.22 355.71 63.5 252.88 Bamnipal Steel Ltd.
3 Monnet Ispat & Energy Limited 110.15 28.92 26.26 123.35 Consortium of JSW and AION Investments Pvt. Ltd.
4 Essar Steel India Limited 494.73 410.18 82.91 266.65 Arcelor Mittal India Pvt. Ltd.
5 Alok Industries Limited 295.23 50.52 17.11 115.39 Reliance Industries Ltd, JM Financial Asset Reconstruction Company Ltd., JMFARC- March 2018 Trust
6 Jyoti Structures Limited 73.65 36.91 50.12 387.44 Group of HNIs led by Mr Sharad Sanghi
7 Bhushan Power & Steel Limited 471.58 193.5 41.03 209.12 JSW Limited
8 Amtek Auto Limited 126.41 26.15 20.68 169.65 Deccan Value Investors L.P. and DVI PE (Mauritius) Ltd.
Under Process
9 Era Infra Engineering Limited Under CIRP
10 Jaypee Infratech Limited Under CIRP
11 Lanco Infratech Limited Under Liquidation
12 ABG Shipyard Limited Under Liquidation

Status of CIRPs since its inception (as of 31 December 2021).

Status of CIRPs No. of CIRPs
Admitted 4,946
Closed on Appeal / Review / Settled 714
Closed by withdrawal under section 562
12A
Closed by resolution 457
Closed by liquidation 1,514
Ongoing CIRP 1,699
Timeline of ongoing CIRPs
> 270 days 1,241
> 180 days ≤ 270 days 114
> 90 days ≤ 180 days 161
≤ 90 days 183

NPAs of SCBs recovered through various channels (amounts in Rs. Billion).

Year Recovery Channel Lok Adalats DRTs SARFAESI Act IBC Total
2016–17 No. of cases referred 21,52,895 28,902 80,076 37 22,61,873
Amount involved 1,057.87 670.89 1,131.00 - 2,859.76
Amount recovered 38.03 163.93 77.58 - 279.54
3 as percentage of 2 3.6 24.4 6.9 - 9.8
2017–18 No. of cases referred 33,17,897 29,345 91,330 704 34,39,276
Amount involved 457.28 1,330.95 818.79 99.29 2,706.31
Amount recovered 18.11 72.35 263.80 49.26 403.52
3 as percentage of 2 4.0 5.4 32.2 49.6 14.9
2018–19 No. of cases referred 40,87,555 51,679 2,35,437 1,152 43,75,823
Amount involved 534.84 2,684.13 2,586.42 1,454.57 7,259.96
Amount recovered 27.50 105.52 389.05 664.40 1,186.47
3 as percentage of 2 5.1 3.9 15.0 45.7 16.3
2019–20 No. of cases referred 59,86,790 33,139 1,05,523 1,986 61,27,438
Amount involved 678.01 2,050.32 1,965.82 2,249.35 6,943.50
Amount recovered 42.11 99.86 342.83 1,041.17 1,525.97
3 as percentage of 2 6.2 4.9 17.4 46.3 22.0
2020–21 No. of cases referred 19,49,249 28,182 57,331 537 20,35,299
Amount involved 280.84 2,253.61 675.10 1,351.39 4,560.94
Amount recovered 11.19 81.13 276.86 273.11 642.28
3 as percentage of 2 4.0 3.6 41.0 20.2 14.1
eISSN:
2720-1279
Langue:
Anglais
Périodicité:
Volume Open
Sujets de la revue:
Business and Economics, Business Management, other, Law, Commercial Law, Commercial Legal Protection, Public Law
RSS Feed de la revue