Creditors recover record ₹67,000 crore via IBC in FY25, up 42% from FY24
New Delhi, May 15, 2025
Creditors recovered ₹67000 crore through IBC in FY25 a 42% jump from FY24 aided by record corporate resolutions and higher NCLT capacity after new appointments
Creditors recovered over ₹67,000 crore from companies undergoing bankruptcy proceedings in the financial year 2024-25 (FY25), marking the highest-ever annual recovery under India’s Insolvency and Bankruptcy Code (IBC), data from the National Company Law Tribunal (NCLT) showed. The amount represents a 42 per cent jump from the ₹47,206 crore resolved in the previous financial year.
284 corporate resolutions approved in 2024–25
This surge in recoveries comes alongside a record 284 corporate resolutions approved by the NCLT between April 2024 and March 2025, surpassing the 275 cases resolved the year before. The improvement is attributed to better streamlining of regulatory processes, which has helped make the IBC mechanism more effective.
Of the total resolutions in FY25, 267 were corporate insolvency cases filed under Sections 7, 9, 10 and 54(C) of the IBC, while 17 involved personal insolvency matters under Sections 94 and 95. These led to recoveries of ₹67,081 crore and ₹95 crore, respectively. The previous year saw 268 corporate resolutions and seven personal cases, yielding a total recovery of ₹47,206 crore.
Rise in new insolvency admissions
The number of new insolvency admissions also increased slightly to 1,346 cases in FY25, compared to 1,318 in FY24. Personal insolvency applications under Sections 94 and 95 nearly doubled to 673.
20 new members added to NCLT bench
Around 20 new members were appointed to the NCLT on February 28, 2025. This much-needed addition boosted its capacity to manage bankruptcy and company law matters. By the end of March, only three out of 63 tribunal positions remained vacant, marking a significant improvement following a wave of recent retirements.
In November 2024, the Supreme Court, led by then Chief Justice DY Chandrachud, had cited the lack of members and inadequate infrastructure at both the NCLT and NCLAT as reasons hindering insolvency proceedings. During a Jet Airways liquidation hearing, the court pointed out that the NCLT was functioning with just 43 members, well below its sanctioned strength of 63.
Newly appointed members serve a term of five years or until they reach the age of 65, whichever comes first.
[The Business Standard]
