Categories: IBC Laws

Insolvency & Bankruptcy Code Performance (as of Sept 2025)

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
10 months ago
Rajput Jain & Associates

Rajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders. Rajput jain & Associates, a professional firm, offers its clients a full range of services, To serve better and to bring bucket of services under one roof, the firm has merged with it various Chartered Accountancy firms pioneer in diversified fields. We have associates all over India in big cities. All our offices are well equipped with latest technological support with updated reference materials. We have a large team of professionals other than our Core Team members to meet the requirements of our prospective clients including the existing ones. However, considering our commitment towards high quality services to our clients, our team keeps on growing with more and more associates having strong professional background with good exposure in the related areas of responsibility.

Leave a Comment

Related Post

Recent Posts

E-Invoicing Introduced for RCM Self-Invoices

New GST Advisory 2026: E-Invoicing Introduced for RCM Self-Invoices The GST Network, based on the recommendations of the GST Council… Read More

7 hours ago

Four Key IBBI Circulars Every Insolvency Professional Must Know

One Deadline Relaxed, Another Tightened: Four Key IBBI Circulars Every Insolvency Professional Must Know The Insolvency and Bankruptcy Board of… Read More

1 week ago

Direct Tax Collections FY 2026-27 (as on 14.10.2026) –Analysis

Direct Tax Collections FY 2026-27 (as on 14.10.2026) – Detailed Analysis The data compares Direct Tax collections up to 14… Read More

1 week ago

Commercial Courts Act: Transforming Commercial Litigation in India

Key Provisions, Jurisdiction, Mediation under Commercial Courts Act 2015 Introduction The Commercial Courts Act, 2015 marked a significant reform in… Read More

1 week ago

GST Council Proposes Major Measures to Simplify Compliance

GST Council Proposes Major Measures to Simplify Compliance The GST Council has recommended a series of reforms aimed at reducing… Read More

2 weeks ago

XBRL Applicability under the Companies Act, 2013

XBRL Applicability under the Companies Act, 2013 – Detailed Explanation XBRL (eXtensible Business Reporting Language) is a globally accepted electronic… Read More

2 weeks ago
Call Us Enquire Now