look news india
Mumbai: The National Company Law Tribunal (NCLT) approved a total of 269 resolution plans under the Insolvency and Bankruptcy Code (IBC) in the last financial year. Sources in the Insolvency and Bankruptcy Board of India said that this figure is 42 percent more than the last financial year. However, the recovery rate is low.
The increasing number of resolved cases shows that IBCs designed to recover creditors' money from liquidated companies are proving effective.
A total of 189 resolution plans were approved in FY 2023.
However, in these cases only 32 per cent of the total amount claimed was recovered.
However, the resolution process still takes an average of 679 days. As a result of laxity caused by complaints from several stakeholders, the value of stressed assets has further declined and the amount recovered from creditors remains low.