20,484 Insolvency Cases Remain Pending

New Delhi: As many as 40,943 applications were filed under the Insolvency and Bankruptcy Code (IBC), of which 28,818 applications involving Rs10 lakh crore were resolved even before admission, Union Minister of State (MoS) for Corporate Affairs Harsh Malhotra said in Lok Sabha on Monday. He also said that the introduction of the IBC in 2016 significantly benefited India, improving its global rank by 56 places to reach 52 in 2019 from 108 in 2018.

“Under IBC, 40,943 applications were filed of which 28,818 applications were resolved even before admission. This itself is a big achievement. Of those resolved, the total amount involved was around Rs10 lakh crore. Among those which are pending or under trial, 1,119 have gone for resolution and resolved,” he said.

The minister said many reforms have been brought with regards to home buyers. “If any big builder or a consumer goes to the National Company Law Tribunal (NCLT), which is a quasi-judicial body, we have ensured resolution tower-to-tower basis. We have ensured possession of home buyers even during proceedings,” he said.

Malhotra said as per information provided by NCLT, the number of cases pending under the Companies Act were 8,133 and under the IBC were 12,351 as on December 31, 2024. He said there were several reasons for the pendency of cases in NCLT, which depends on circumstances and complexity of each case, nature of evidence, number of Interlocutory Applications (IA), stay by the higher courts in many cases, cooperation of stake holders and adjournments.