According to the World Bank Report of Doing Business, the insolvency resolution process in India is complex, time consuming and expensive due to presence of multiple laws. It takes an average of 4.3 years to resolve bankruptcy, which is extremely high as compared to countries like Japan, Singapore and Finland[1]. India is ranked at 136 out of 189 countries in resolving insolvency. On an average, a secured creditor in India recovers 25.7% for every dollar of credit from an insolvent firm which takes 4.3 years for proceeding to conclude. In comparison OECD countries, creditor recovers 72.3 cents and the process takes around 1.7 years to conclude. A complex judicial system in India has restricted the use of formal legal bankruptcy procedure…
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