Creditors recover Rs 3.36 lakh crore from 947 resolved CIRPs till 31 Mar’24
In the seven full (financial) years of Insolvency and Bankruptcy Code (IBC) since 2017-18, the new loan recovery system has been able to resolve 947 corporate insolvency cases with approval of resolution plan. In these cases, the creditors could recover Rs 3.36 lakh crore against their total admitted claims of Rs 10.5 lakh crore, according to a report by the Insolvency and Bankruptcy Board of India (IBBI).
If compared to admitted claims, the rate of recovery is an unimpressive 32%. However, if compared with the liquidation value of these firms, the recovery rate is 162%. The recovery was 85% of the fair value of these firms.
In FY24, 269 CIRPs involving Rs 1.74 lakh crore in admitted claims were closed with the approval of resolution plans. The liquidation value of these companies were Rs 34,558 crore against which the creditors recovered Rs 47,653 crore.
| Year | Number of resolutions | Admitted claims (Rs cr) | Liquidation value (Rs cr) | Total realisation (Rs cr) | Realisation as % of admitted claims |
| 2016-17 | 0 | 0 | 0 | 0 | 0 |
| 2017-18 | 19 | 8198 | 1894 | 4,458 | 54 |
| 2018-19 | 75 | 206807 | 48,032 | 111,441 | 54 |
| 2019-20 | 132 | 164568 | 25,193 | 41,825 | 25 |
| 2020-21 | 119 | 127200 | 18320 | 27,551 | 22 |
| 2021-22 | 144 | 210934 | 36294 | 47,522 | 23 |
| 2022-23 | 189 | 154285 | 43361 | 55,449 | 36 |
| 2023-24 | 269 | 174291 | 34559 | 47,653 | 27 |
| Total | 947 | 10,46,283 | 2,07,653 | 3,25,901 | 32 |
Liquidation
As many as 2,476 corporate debtors were send for liquidation till 31 March 2024. Of those, final reports have been submitted in 960 cases – 509 have been closed by dissolution, 47 sold as going concern and 12 cases were resolved through compromise. In total, the closed case of liquidation resulted in a recovery of Rs 4,975 crore against the liquidation value of Rs 5,190 crore. The total claims admitted in these cases was Rs 1.26 lakh crore.
According to the report released by the Insolvency and Bankruptcy Board of India (IBBI), 77% of the corporate debtors ordered to be liquidated were under BIFR or defunct, and therefore had almost zero economic value.
The 47 corporate debtors, which were got sold as going concern under the liquidation process, helped recover Rs 2,065 crore against admitted claims of over Rs 46,000 crore. The liquidation value of these companies were Rs 2,135 crore.
Large cases
Of 947 CIRPs that saw successful resolution, 152 had admitted claims of Rs 1,000 crore or more. Together these companies had total admitted claims of Rs 9.14 lakh crore, and liquidation value of Rs 1.81 lakh crore. Creditors could recover Rs 3.03 lakh crore.
Of the 2476 corporate debtors ending up in order of liquidation, 200 had admitted claims of Rs 1,000 crore or more. The aggregate admitted claims against these companies were Rs 8.8 lakh crore but, according to IBBI, they had assets valued at only Rs 44,000 crore.
Avoidance transactions
Till 31 March 2024, 1237 applications seeking avoidance transactions were filed. The aggregate amount involved in these many cases was Rs 3.70 lakh crore. As many as 292 avoidance transaction applications have been disposed off involving Rs 51,738 crore. A total amount of Rs 6,600 crore has been clawed back from these cases.
Voluntary liquidation
As many as 1861 corporate persons had filed voluntary liquidation as on 31 March 2023. Of the 1861 cases, final liquidation report was filed in 1393 cases, while 468 cases were ongoing. The 1393 CDs, where final report has been filed, had total assets of Rs 10,563 crore while outstanding debt were only Rs 215 crore.
Also See: IBC resolves 891 CIRPs involving Rs 10 lakh crore loans defaults
