The Insolvency and Bankruptcy Code (IBC) is one of the most important economic reforms of recent times and the debt recovery mechanism has strengthened with claims worth over Rs1.73 lakh crore settled so far under the new law, the Economic Survey said.
Till March 31, 2019, the Corporate Insolvency Resolution Process (CIRP) yielded a resolution of 94 cases which has resulted in the settlement of claims worth Rs1,73,359 crore, it said.
“The NCLT (National Company Law Tribunal) infrastructure requires to be scaled up so as to achieve timely resolution of debt recovery. The debt recovery mechanism strengthened with the enactment of IBC, 2016,” the Economic Survey 2018-19 said.
It said the ecosystem for insolvency and bankruptcy is getting systematically built out with recovery and resolution of significant amount of distressed assets.
Also, as on February 28, 2019, 6,079 cases involving a total amount of Rs2.84 lakh crore have been withdrawn before admission under provisions of the IBC, it said.