Average resolution time under IBC rises to 603 days

THE AVERAGE TIME to conclude a resolution process under the Insolvency and Bankruptcy Code (IBC) is on a rise. According to official data, it took 603 days to complete 1,300 corporate insolvency resolution processes (CIRP) in the July-September 2025 quarter, which is higher than 582 days in the corresponding quarter last year.

- MANU KAUSHIK

This is way above the 330day limit set to conclude the process.

As per the latest report from the Insolvency and Bankruptcy Board of India (IBBI), the 2896 CIRPs, which ended up in orders for liquidation, took an average 518 days to complete, up from 505 days in the same quarter last year.

Even though the government has taken a series of steps to accelerate the process such as including the litigation time within the 330-day limit, pre-packaged introducing insolvency for MSMEs, and capacity building; the worsening of average resolution time results has resulted in significant erosion in the asset values of distressed companies.