The Insolvency and Bankruptcy Code, 2016, has a timeline of 270 days to complete the Corporate Insolvency Resolution Process (CIRP), including any extensions granted. This includes an initial 180 days, plus an additional 90 days in exceptional circumstances. As per the latest figures up to December 2023 released by the Insolvency and Bankruptcy Board of India, 68 percent of CIRPs have missed the 270-day deadline, and the average time for resolution has reached 677 days for financial creditors (FCs).
Even with these timelines, FCs have managed to recover only 33.8 percent of their admitted claims. While FCs have realised 177.6 percent when compared with the debtor’s liquidation value (the lowest possible value estimate of a…
