 "IBC, insolvency, bankruptcy, NCLT, company, firms")
Resolution professionals filed 809 applications for avoidance transactions for around Rs 2.2 trillion till September 2022.
Of this, only 98 applications, or just about 8 per cent of the total amount, has been disposed of. The recovery is even less at 0.3 per cent, according to the latest data by the Insolvency and Bankruptcy Board of India.
An analysis by CareEdge explained that resolution professionals can reverse any transaction entered by the debtor company before the Insolvency and Bankruptcy Code (IBC) is invoked if the RP can prove that the transaction was intended to divert funds or alienate assets.
