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Recovery Rates Halve Under Insolvency Code
29 May
Summary
- Approved resolution plans decreased to 225 cases in FY26.
- Admitted CIRP cases saw a 5% decline in the same period.
- Recovery against admitted claims dropped to 23% in FY26.
The number of resolution plans approved by the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC) has declined. In FY26, only 225 resolution plans were approved, a decrease from the 259 cases in FY25. Concurrently, the number of cases admitted into the corporate insolvency resolution process (CIRP) reduced by 5%, settling at 679.
This period also witnessed a significant drop in financial recoveries. According to Icra, realisations against admitted claims were halved in FY26, falling to 23% from 46% in the previous fiscal year. The situation was particularly acute in the second half of FY26, where recoveries plunged to 22% from 63% in the same period of FY25.
Since its inception in 2016, the IBC has seen 8,987 corporate debtors admitted. By March 2026, approximately 64% of these CIRPs had reached a resolution, either through successful plans, withdrawals, or liquidation.
