Insolvency and Bankruptcy Code completes 10 years; over ₹4 lakh crore realised for creditors
The Insolvency and Bankruptcy Code, 2016 completed 10 years on 28 May 2026; as of March 2026, 1,419 cases had yielded resolution plans, realising over ₹4 lakh crore for creditors.
Summary
The Ministry of Corporate Affairs marked 10 years of the Insolvency and Bankruptcy Code (IBC), which came into force in 2016. Till March 2026, 8,987 cases were admitted and 7,102 closed; 4,099 companies (about 58% of closures) were rescued and 3,003 ended in liquidation. Resolution plans in 1,419 cases realised over ₹4 lakh crore — 95% of fair value and 167% of liquidation value. More than 30,000 cases worth nearly ₹14 lakh crore were settled before admission. S&P Global Ratings upgraded India's insolvency framework from 'Group C' to 'Group B', and RBI's Report on Trend and Progress of Banking 2024–25 called IBC the most effective recovery channel, accounting for about 52.4% of banks' recoveries.
Key facts
- Milestone
- IBC completes 10 years (came into force 2016)
- Cases admitted / closed
- 8,987 / 7,102 (till March 2026)
- Rescued vs liquidated
- 4,099 rescued (~58%); 3,003 liquidation
- Resolution plans
- 1,419 cases; over ₹4 lakh crore realised
- Realisation
- 95% of fair value; 167% of liquidation value
- Pre-admission settlements
- 30,000+ cases, ~₹14 lakh crore
- S&P rating of framework
- Upgraded from Group C to Group B
- Share in bank recoveries (2024-25)
- ~52.4% via IBC (RBI)
- Recovery rate under IBC
- 36.6% in 2024-25 (28.3% previous year)
Practice MCQs 4 questions
The Insolvency and Bankruptcy Code (IBC), which completed 10 years in May 2026, came into force in which year?
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Correct answer: D — 2016
MCA said the IBC, which came into force in 2016, completed 10 years on 28 May 2026.
As per MCA data released on IBC's 10th anniversary, resolution plans under the Code have realised how much for creditors (as of March 2026)?
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Correct answer: C — Over ₹4 lakh crore
1,419 resolution plans realised over ₹4 lakh crore; ₹14 lakh crore is the value of 30,000+ cases settled before admission.
Consider the following statements regarding IBC outcomes up to March 2026: 1. More cases closed with the company being rescued than with liquidation. 2. Realisation for creditors under resolution plans was below the liquidation value of the assets. Which of the statements given above is/are correct?
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Correct answer: A — 1 only
4,099 companies were rescued against 3,003 liquidations; realisation was 167% of liquidation value, i.e. above it.
S&P Global Ratings, as cited by MCA on IBC's 10th anniversary, upgraded India's insolvency framework to which group?
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Correct answer: D — From Group C to Group B
S&P Global Ratings upgraded India's insolvency framework from 'Group C' to 'Group B'.