NCLT-approved resolution plans under insolvency code decline to 225 in FY26 | Company News – Business Standard

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Resolution plans approved under the Insolvency and Bankruptcy Code declined in FY26, while recoveries against admitted claims dropped sharply, raising concerns over resolution outcomes

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The number of resolution plans (RPs) approved by the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC) dipped to 225 cases in FY26 from 259 cases in FY25. At the same time, the number of cases admitted in the corporate insolvency resolution process (CIRP) declined by 5 per cent to 679.

According to rating agency Icra, realisations reduced significantly in FY26 with recoveries against admitted claims halving to 23 per cent from 46 per cent in FY. This was led by a significant drop in recoveries to 22 per cent in H2FY26 from 63 per cent in H2FY25, which is a cause for concern. Since the introduction of the IBC in 2016, 8,987 corporate debtors have been admitted, with 64 per cent of the CIRPs being resolved (either through a successful RP or withdrawal or liquidation) by March 2026.