NEW DELHI: Creditors have successfully recovered over Rs 4 lakh crore through resolution processes enabled by the insolvency law, which has been operational for a decade.
Additionally, more than 30,000 cases, totaling nearly Rs 14 lakh crore, have been addressed at the pre-admission stage before the National Company Law Tribunal (NCLT).
The Insolvency and Bankruptcy Code (IBC), which was implemented in 2016, emphasizes a time-bound and market-linked approach to resolving stressed assets.
“As of March 2026, 1,419 cases have generated resolution plans, leading to the realization of over Rs 4 lakh crore for creditors. This amounts to 95% and 167% of their fair and liquidation values, respectively,” stated IBBI Chairperson Ravi Mital.
In celebration of IBC’s 10-year milestone, Mital highlighted the deterrent effect of the Code, noting that over 30,000 cases filed with the NCLT were resolved at pre-admission through withdrawals, involving around Rs 14 lakh crore.
“These settlements show how the Code has significantly changed debtor-creditor dynamics, promoting timely resolutions of financial distress outside conventional insolvency proceedings,” he added.
The IBC and NCLT are essential institutions in the implementation of IBC.
By March of this year, a total of 8,987 cases had been admitted, with 7,102 reaching closure.
“Among the closed cases, 4,099 companies (about 58%) were successfully rescued, while 3,003 ended in liquidation.
Of the rescued entities, 1,388 cases were closed due to appeal, review, or settlement; 1,292 were withdrawn,” Mital explained.
Notably, around 42% of the cases that concluded with resolution plans had previously been with the Board for Industrial and Financial Reconstruction or were inactive.
The IBC has shifted India’s approach to business distress from delay and uncertainty to resolution and revitalization, according to Nirmala Sitharaman’s office in a series of posts on X.
As the leader of the finance and corporate affairs ministries, Sitharaman’s office described the IBC as a cornerstone of India’s financial reform landscape, indicating a significant transition from a fragmented, debtor-led process to a unified, creditor-driven, and time-bound framework.
In a message on the IBBI website, Mital stated that the Code has evolved beyond mere legislative reform to become an institutional transformation with far-reaching impacts on credit markets, corporate conduct, investor confidence, and economic efficiency.
“The jurisprudence surrounding the Code has fostered a robust and dynamic insolvency ecosystem that continuously evolves to meet emerging economic trends and stakeholder expectations,” he concluded.
