Debt Resolution Uptick in Q1 as NCLT Vacancies Get Filled

In the June quarter, 58 sick companies were salvaged by their creditors and new investors

- Gireesh Chandra Prasad

Creditors rescued 69 indebted businesses in the June quarter through the Insolvency and Bankruptcy Code (IBC) route, improving upon resolutions in the year-ago period but falling a tad lower sequentially, showed official data.

In Q1 FY25, 58 sick companies were salvaged by their creditors and new investors, showed data available from the Insolvency and Bankruptcy Board of India (IBBI), the sector's rule-maker.

The improvement comes in the wake of the government filling vacancies in the National Company Law Tribunal (NCLT)—the judicial authority that clears debt resolution schemes under the bankruptcy code.

As of March this year, it had 60 members out of 63 sanctioned posts, data available from the tribunal showed.

That is a major improvement, given that at the end of September 2024, the tribunal had only 43 members, or 30% short of its sanctioned strength, Mint reported on 6 December.