Despite capacity constraints, IBC is working well. In the April-June quarter of FY26, 61 resolution plans were approved, and creditors realised 29% of the admitted claims, says M Nagaraju
Despite the IBC being in place for over nine years now, operational creditors (OCs) continue to feel sidelined, and reforms have done little to improve their position in recoveries.
If approved, it would lead to a separation in the two parts of resolution process -- approval of bids and distribution of money to the creditors.
Creditors, or banks, need to submit insolvency applications soon after a default occurs, says Insolvency and Bankruptcy Board of India chairperson Ravi Mital. Delays on this front lead to erosion in the value of assets, he says