Resolutions under IBC see 80% rise in last fiscal, efforts on to speed up the process: Officials

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Click here! Govil said the expectation is that the number of resolutions may go up to 300 this financial year and also wondered whether that is "sufficient" to unclog the pipeline. Around 5,000 new cases are filed every year under the IBC, Govil said adding that the IBC ecosystem should have the capacity to deal with at least 1,000 resolutions. This can be done by filling up posts, improving processes and regulations, among others, he noted.

Under the IBC law, creditors have witnessed recoveries of nearly ₹3 lakh crore so far and the recovery amount stood at more than ₹51,000 crore in 2022-23 financial year, the report said. NCLT president chief Justice (Retd) Ramalingam Sudhakar stressed on pre-packaged insolvency resolution process in the context of Micro, Small and Medium Enterprises (MSMEs). "Post Covid, it has been shown very evidently that MSMEs are in great distress...

the next phase of evolution in the IBC should be to fine tune... pre-packaged insolvency," Sudhakar said. "The system should be AI-enabled with a proper decision support system and must have technology...

for an integrated case management system... AI will be considered for suitable deployment as part of future contours in the insolvency ecosystem," he added. Justice Ashok Bhushan, chairperson of the National Company Law Appellate Tribunal (NCLAT) said the judiciary's role in interpreting the IBC has been transformative.