Fiscal 2024: NCLT approves record 269 insolvency resolution plans
Chandigarh, August 2
The Insolvency and Bankruptcy Code (IBC) clocked the highest ever resolutions in fiscal 2024, with 269 cases getting the National Company Law Tribunal (NCLT) nod for resolution plans, a 42 per cent growth over 189 in the fiscal 2023.
Of the 269 cases, 88 per cent are from the backlog of earlier years’ admissions. This has been driven by greater investor interest in turnaround of stressed assets as seen in the resolution plan submissions.
Also, appointment of new NCLT members has also aided in higher number of resolution cases.
However, the moderation in recovery rates and stretched timelines played spoilsport. The year saw resolution plans with recovery rates of 27% of admitted claims, lower than 36% realised in fiscal 2023.
With demand durability likely across most sectors, the number of acceptable resolution plans received by lenders under NCLT has increased.
Delays in admission of cases by NCLT due to the burden of ongoing cases, along with multiple cross litigations between stakeholders, objections filed by promoters and deferred case hearings. — TNS
