The amount obtained through the insolvency resolution in FY 2024-2025 is the second highest by 1.19 993 crore obtained in FY2018-19 out of 81 cases according to data. | Photo Credit: Akhilesh
AS MANY AS 284 Resolution Plans Were Approved Under the insolvency and bankruptcy code (IBC) in 2024-25, WHIC WOULD RESULT IN SETTEMENTS TO THE TUNE OF ₹ 67,176 CROR Through 275 Resolution Plans in 2023-2024, As Per the Data From National Company Law Tribunal (NCLT).
India adopted IBC, its first comprehensive bankruptcy Act in 2016 to improve the overall process of solving insolvency insolvency.
The amount obtained through the insolvency resolution in FY 2024-2025 is the second highest by 1.19 993 crore obtained in FY2018-19 out of 81 cases according to the data.
In 2024-25, up to 1,346 companies were adopted compared to 1,318 companies in 2023–2024.
“Higher recovery levels generally suggest that the code is generally better compared to other solutions. However, we should also remember that data can be distorted by several high -value recovery,” said Saurabh Bhalerao, associated director of BFSI, edge care evaluation.
It is also necessary to consider the amount against a quantum admitted to more than 11 lakh crore (since December 2024). This higher resolution can also be attributed to a lower free space on NCLT, where new members have been added to strengthen its capacity and streaming regulatory processes, he added.
IBC has gained importance in the last few years with a level of recovery around 31%. Meanwhile, ongoing cases have been slightly below 2,000 brands over the past few years, Bhalerao said.
However, the knomer of the time required for a reasonable solution remains increased due to the ongoing lawsuit at NCLT and other forums. It is considered to maintain the business value of the underlying asset and the reduction of the timeline (how faster resolutions usually create higher enforcement), such as formal out -of -court solutions such as mediation, such as the mechanism of preliminary package (currently available to MSME), and points to incorrectness.
The IBC efficiency rate is the disposal ratio. With several initiatives to improve the results, the ratio improved from 5.06 in FY18 to 1.32 within nine months of FY25, added Mr. Bhalerao.
EOM
Published – May 15, 2025 22:11 is
