Recoveries under the Insolvency and Bankruptcy Code (IBC) have seen a significant decline in the fiscal year 2025-26, as outlined in a report by the ratings agency ICRA. A key issue has been the delay in resolution timelines, substantial haircuts for lenders, and an overwhelming number of liquidation cases. The recovery rate against admitted claims dropped to 23% from the previous year’s 46%, with the most marked decrease occurring in the latter half of the financial year.
The number of resolution plans endorsed by the National Company Law Tribunal (NCLT) also fell, with 225 cases approved in 2025-26 compared to 259 in 2024-25. Similarly, Corporate Insolvency Resolution Process (CIRP) admissions saw a 5% decline, registering 679…