New Delhi, March 21,2023:  Since the provisions relating to Corporate Insolvency Resolution Process (CIRP) came into force on December 1, 2016, a total of 6,199 CIRPs have started, as on the end of December 2022, the Parliament was informed on Tuesday.

As of December 2022, 611 CIRPs have resulted in resolution, where the creditors have recovered 30.40 per cent of their admitted claims, Minister of State for Corporate Affairs, Rao Inderjit Singh told the Rajya Sabha in a written reply to a question seeking to know the number of companies which have utilized the provisions of Insolvency and Bankruptcy Code (IBC), 2016 since it came into force.

On a question whether there is a delay in the completion of the process within stipulated time, he said that the average time taken (after excluding the time excluded by the Adjudicating Authority) for resolution of the 611 resolved cases is 482 days.

Insolvency resolution process under the IBC is a market driven process 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, litigations and marketing effort, he added.

To the question on the list of defaulters who have availed ‘haircuts’ above Rs 10 crore, the Minister said: “As of December, 2022, out of the 611 resolved CIRPs, in 477 cases there is a difference of more than Rs 10 crore in realisation amount of creditors against their admitted claim.”