Insolvency code missing deadlines of recoveries 2 yrs after ambitious start

According to IBBI data, of the 816 ongoing CIRPs, more than 29% of the cases have breached the extended 270-day deadline within which resolutions were to be completed, and 19% have crossed 180 days

Time-bound resolution, a cornerstone of the Insolvency and Bankruptcy Code (IBC), is under question. If value maximisation is one of the pillars of the IBC, achieving it in a time-bound manner is the other. 

In terms of recovery, till September, financial creditors have realised around Rs 584 billion against admitted claims of Rs 1,265 billion. Compared to a pre-IBC regime, at an average recovery rate of 26 per cent, the figure would perhaps look favourable. But, the code is slipping on timelines, and this is a loss to financial creditors.

According to the Insolvency and Bankruptcy Board of India (IBBI)