Parliament Question: Delay in Corporate Insolvency Resolution

GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS LOK SABHA UNSTARRED QUESTION NO. 2488 ANSWERED ON MONDAY, AUGUST 3, 2026/SHRAVANA 12, 1948 (SAKA) DELAY IN CORPORATE INSOLVENCY RESOLUTION QUESTION 2488. Thiru Arun Nehru: Will the Minister of CORPORATE AFFAIRS be pleased to state: (a) the number of Corporate Insolvency Resolution Processes pending under the Insolvency and Bankruptcy Code, 2016 and the average time taken for their resolution during the last five years; (b) the number of cases that have exceeded the prescribed timeline for completion of the Corporate Insolvency Resolution Process and the reasons identified therefor; (c) whether the Government has undertaken any assessment of the impact of delays in resolution on recovery by creditors and value of stressed assets, if so, the details thereof; (d) the measures taken to strengthen the capacity of the National Company Law Tribunal for expeditious disposal of insolvency proceedings; and (e) the progress made in implementation of recent reforms aimed at reducing delays and improving efficiency under the Insolvency and Bankruptcy Code, 2016? ANSWER MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS AND MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS [SHRI HARSH MALHOTRA] (a) and (b): As on 31 March 2026, 1885 Corporate Insolvency Resolution Processes (CIRPs) were ongoing under the Insolvency and Bankruptcy Code, 2016 (IBC). Out of these, 1367 CIRPs have exceeded the statutory timeline of 330 days. During the last five years, a total of 1,077 cases have yielded resolution plans under the IBC. Details of the average time taken for their resolution [after excluding the time excluded by Adjudicating Authority (AA)] are presented below: - Sl Period Average Resolution Time (in days) No. (After excluding the time excluded by AA) 1. FY 2021-2022 553 2. FY 2022-2023 658 3. FY 2023-2024 705 4. FY 2024-2025 718 5. FY 2025-2026 751Time taken to resolve each case depends on circumstances and complexity of each case, nature of evidence, number of Interlocutory Applications (IAs), stay by the higher courts, cooperation of stake holders and adjournments etc. (c): The Insolvency and Bankruptcy Board of India (IBBI) had undertaken a study to examine the impact of the time taken for resolution and creditor recoveries. The study indicates that recoveries decline as the resolution timeline increases. (d): Necessary steps are taken on an ongoing basis to strengthen the capacity of National Company Law Tribunal, including filling up of vacancies, implementation of e-court and hybrid court project, regular colloquiums for capacity building of members, provision of infrastructure facilities etc. (e): The Insolvency and Bankruptcy Code (Amendment) Act, 2026 seeks to improve the operation, enhance effectiveness, clarify intent, and incorporate novel concepts in the Code. The Insolvency and Bankruptcy Code (Amendment) Act, 2026 been notified by the Government on 6 April 2026. Following regulations have been made under the aforesaid Act to implement the reforms aimed at reducing delays and improving efficiency under IBC. (i) IBBI (Grievance and Complaint Handling Procedure) (Amendment) Regulations, 2026. (ii) IBBI (Inspection and Investigation) (Amendment) Regulations, 2026. (iii) IBBI (Information Utilities) (Amendment) Regulations, 2026. (iv) IBBI (Pre-Packaged Insolvency Resolution Process) (Third Amendment) Regulations, 2026. (v) IBBI (Voluntary Liquidation Process) (Second Amendment) Regulations, 2026. (vi) IBBI (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) (Amendment) Regulations, 2026. (vii) IBBI (Bankruptcy Process for Personal Guarantors to Corporate Debtors) (Second Amendment) Regulations, 2026. (viii) IBBI(Liquidation Process) (Fourth Amendment) Regulations, 2026. (ix) IBBI (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2026. ******