The cumulative number of insolvency cases initiated by operational creditors such as raw material suppliers and vendors against defaulters trailed that by financial creditors for the first time since fiscal 2017, show latest data.
According to officials, this suggests a growing preference among operational creditors in recent years for out-of-court settlements.
Between late 2016, when the Insolvency and Bankruptcy Code (IBC) came into effect, and June 2025, operational creditors initiated 3,963 cases, against 4,002 by their financial counterparts, mainly banks, according to data from the Insolvency and Bankruptcy Board of India (IBBI). Another 522 companies voluntarily filed for bankruptcy.
In the June quarter, operational creditors…