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
4 months ago
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