Although fresh insolvency proceedings were suspended in May for a period of six months to help companies weather the coronavirus pandemic, ongoing proceedings continued and as many as 24 companies were ordered to go in for liquidation by NCLT benches across the country in about two months after the nationwide lockdown was imposed.
As many as 19 of these companies were defunct, according to the data of the Insolvency and Bankruptcy Board of India (IBBI).
The total admitted amount of the companies was `9,302.82 crore, and the total liquidation value was just 8.6 per cent of the total admitted amount at `803.89 crore, the data showed. Data of some of the companies, including admitted dues and liquidation were not available.
Three corporate debtors which were ordered for liquidation as a going concern, or which were not defunct, were Bhatia Global Trading Private Ltd, Lotus Auto Engineering Private Ltd and Vintron Communication Private Ltd.
Bhatia Global Trading was ordered for liquidation by the Ahmedabad bench of the NCLT on May 29 while the New Delhi bench ordered the same for Lotus Auto Engineering and Vintron Communication on June 1 and 8, respectively. The admitted claims for Bhatia Global Trading amounted to `1273.93 crore while the liquidation value was `250.92 crore.