IBC report card: In 3 years, 48% cases initiated by operational creditors

The Insolvency and Bankruptcy Code (IBC) is groaning under the weight of the cases being referred under it. Of the 2,542 cases now under the IBC, 1,232 or 48 per cent have been initiated by operational creditors, while financial creditors initiated around 1,086 cases or 43 per cent; the rest were done so by corporate debtors. Given the low threshold limit of Rs  1 lakh, operational creditors seem to be more aggressive in dragging debtors to the National Company Law Tribunal (NCLT). 

Recoveries through Lok Adalats and Debt Recovery Tribunals (DRT), too, have fallen significantly since FY16 alongside the number