Bankruptcy rescues down as NCLT falls short of members

In the first half of FY25, 143 businesses got their rescue plans okayed, against 177 a year ago

- Gireesh Chandra Prasad

A 30% shortage of key members at India's bankruptcy courts is slowing the process of debt resolution.

Twenty-two businesses have found debt resolution under the Insolvency and Bankruptcy Code (IBC) in October-November period of this year, against 47 in the year-ago period, provisional public data from Insolvency and Bankruptcy Board of India (IBBI) showed.

And in the first half of the current fiscal year, 143 businesses got their rescue plans approved by the National Company Law Tribunal (NCLT), the judicial authority that clears debt resolution schemes under the bankruptcy code.

In the same period last fiscal, a higher 177 debt resolutions were cleared by the NCLT.

FY24 had witnessed a record number of 269 business rescues under the bankruptcy code as IBBI kept refining its regulations to cut delays and improve efficiency of the code's operation.