The Insolvency and Bankruptcy Code, 2016 (IBC) has strengthened with 6 amendments and 122 reforms, says Mr. Harsh Malhotra, the Minister of State in the Ministry of Corporate Affairs and Minister of State in the Ministry of Road Transport and Highways before Rajya Sabha.
As per the Reserve Bank of India’s (RBI) Report on Trend and Progress of Banking in India (December 2024), IBC has become the most effective recovery mechanism for banks. It accounted for 48% of all recoveries in the financial year 2023-24, followed by the SARFAESI Act (32%), Debt Recovery Tribunals (17%), and Lok Adalats (3%), said the Minister.
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According to the reports, by December 31, 2024, a total of 8,175 Corporate Insolvency Resolution Processes (CIRPs) had been initiated under IBC. Out of these, 3,485 Corporate Debtors (CDs) were successfully rescued—1,119 through resolution plans, 1,236 through appeals, reviews, or settlements, and 1,130 through withdrawal under Section 12A of IBC. However, 2,707 cases were referred for liquidation.
The resolution plans approved in 1,119 cases resulted in a realization of ₹3.58 lakh crore for creditors—amounting to 162.79% of the liquidation value and 87.58% of the fair value, stated the Minister before the Rajay Sabha on 1st April 2025.
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The amendments to the IBC provided a consolidated framework for reorganization, insolvency resolution and liquidation of corporate persons, partnership firms and individuals for maximization of the value of assets, said Mr. Harsh Malhotra. He added that “IBC has had a significant impact on the health of the country’s banking sector and redefined the debtor creditor relationship.”
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