“85% of the cases have been disposed of prior to admission.” Said Srinivas on the sidelines of a conference on the Insolvency and Bankruptcy Code organized by FICCI. He added that the NCLT had in these case “on the request of the creditor and debtor given them time to resolve it.” More than 3500 cases had been resolved in this manner leading to a resolution of around 1,20,000 crores of unpaid claims according to the ministry of corporate affairs.
“There seems to be a tectonic change in the behaviour of borrowers and lenders” said Srinivas adding that both borrowers and lenders had become very conscious which had also impacted the credit flow due to an increase in due diligence
Srinivas added that cases for which resolution plans had been accepted had led to a recovery of about Rs 71,000 crore and that if cases that were at a very mature stage were added to this it would sum to close to Rs 1,20,000 crore.
Another impact which the secretary highlighted was the conversion of NPA accounts in standard accounts by virtue of the borrowers making payments that were overdue. Srinivas said that these accounted for about Rs. 45,000 – 50,000 crores of claims being resolved.
Srinivas did however point out that more than 3200 cases were pending for admission to the NCLT of which 1500 cases were brought by financial creditors.
He also said that in about 800 cases which have been admitted, there have been delays in preparation of the call for expression of interest and delays in evaluation of bids as well as the issue of re-bidding.
“These are issues which will have to be seriously looked into by the Insolvency Professionals and the Committees of Creditors” said Srinivas.