Categories: IBC Laws

Insolvency & Bankruptcy Code Performance (as of Sept 2025)

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Creditors Recover INR 4 Lakh Cr Under IBC Performance (Till Sept 2025)

INR 3.99 lakh crore realised by creditors through resolution plans under the Insolvency & Bankruptcy Code up to 30 September 2025. Recovery equals 170.1% of liquidation value & 93.79% of fair value (in 1,177 cases where fair value was estimated).

Recovery vs claims:

Creditors recovered 32.4% of admitted claims on average.

Total CIRPs Initiated: 8,659
Closed CIRPs: 6,761 (78.1% closure rate)
Recoveries:
- INR 3.99 lakh crore realised
- 170.1% of liquidation value
- 93.79% of fair value (in 1,177 cases)
- 32.4% of admitted claims

Resolution vs Liquidation Outcomes

Resolution Plans

Cases resolved: 1,300
Average time taken: 603 days
Process cost:
- 1.1% of liquidation value
- 0.6% of resolution value

Liquidation Cases

CIRPs ending in liquidation: 2,896
Final reports submitted: 1,529
Outstanding claims: INR 4.44 lakh crore
Asset value: Only INR 0.17 lakh crore
Realisation: 90.7% of liquidation value
Average time: 518 days

While liquidation realises a high % of liquidation value, absolute recovery remains very low, highlighting asset erosion before insolvency admission.

CIRP Statistics (Since Dec 2016):

This reinforces that resolution, not liquidation, remains the core objective of IBC.

Total CIRPs initiated: 8,659
CIRPs closed: 6,761 (≈ 78.1%)
Corporate debtors rescued:
- 187 during Apr–Sep 2025
- 3,865 cumulatively since inception

Sectoral Distribution

Manufacturing: 3,183
Real Estate & Business Activities: 1,903
Construction: 1,052
Other sectors include:
- Wholesale & retail trade
- Hotels & restaurants
- Electricity & utilities
- Transport, storage & communication

IBC continues to outperform liquidation benchmarks, validating its economic rationale. Timelines remain a concern (500–600+ days vs statutory 330 days). High recovery multiples indicate value preservation through resolution, especially for lenders. Manufacturing and real estate continue to dominate stress cases, reflecting structural issues. Despite long timelines, IBC continues to outperform liquidation benchmarks, ensuring value preservation for creditors and reinforcing its role as a creditor-friendly framework.

Tags: Insolvency &Bankruptcy Code

9 months ago

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