Record Approval Of Resolutions Plans by NCLT;  269 resolution plans under insolvency code in FY24

It was assessed that creditor claims of ₹1.7 lakh crore were resolved through approval of resolution plans in FY2024, against ₹1.5 lakh crore in FY2023
Record Approval Of Resolutions Plans by NCLT;  269 resolution plans under insolvency code in FY24

According to the analysis by ICRA, the National Company Law Tribunal ( NCLT )  had approved a record of 269 resolution plans under the Insolvency and Bankruptcy Code ( IBC ) in the Financial Year ( FY24 ).

It was assessed that creditor claims of ₹1.7 lakh crore were resolved through approval of resolution plans in FY2024, against ₹1.5 lakh crore in FY2023. However, haircuts remained high at 73 per cent, against 64 per cent seen in the preceding fiscal.

The number of CIRPs closed through liquidation orders continue to outpace those yielding a resolution plan. The NCLT also passed liquidation orders for 446 corporate debtors in FY2024, against 400 corporate debtors in FY2023

The NCLT has brought down the number of ongoing corporate insolvency resolution processes ( CIRPs ) to 1,920 as on March 31, 2024, from 1,953 as on March 31, 2023. In FY2024, fresh admissions under IBC declined to 987 corporate debtors.

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