Over 30,000 cases involving Rs 13.78 lakh crore resolved even before IBC intervention

The Insolvency and Bankruptcy Code has bought in improvement in credit discipline, with more than 30,000 cases covering underlying defaults worth Rs 13.78 lakh crore being settled prior to admission for debt resolution till December last year, Insolvency & Bankruptcy Board of India executive director said Jithesh John said Saturday in Kolkata.

A total of 1194 corporate insolvency resolution processes (CIRP) have ended in resolution with different degrees of recovery till March 2025. Creditors have realised Rs 3.89 lakh crore under the resolution plans.

Citing a study conducted by the Indian Institute of Management Ahmedabad, John said whie the recovery was about 32% of the claims, the creditors have recovered around 170% of the liquidation value and around 93.36% of the fair value.

About 40% of the CIRPs, which were resolved so far, were defunct companies. In these cases, the claimants have realised 150.33% of liquidation value and 18.96% of their admitted claims.

John was talking at an annual conference on insolvency and bankruptcy code in the city, organised by CII.

The Reserve Bank of India’s latest Trend and Progress of Banking in India report for the year 2023-24 highlighted that out of the Rs 96,000 crore recovered by scheduled commercial banks through various channels, Rs 46,000 crore have been recovered through IBC.To be sure, there is further scope to refine the Insolvency and Bankruptcy Code by focusing on timely liquidation orders and more effective handling of Preferential, Undervalued, Fraudulent, and Extortionate (PUFE) transactions, State Bank of India chief general manager Arun Kumar Yadav said at the conclave.Empirical studies show a direct correlation between robust insolvency frameworks and increased FDI inflows—and India’s experience affirms this, said Bandhan Bank executive director Ratan Kumar Kesh.