1.Insolvency and Bankruptcy Code Nine-Year Review (Insolvency Reforms)
What & Where
Framework: Insolvency and Bankruptcy Code 2016, India’s unified, time-bound insolvency resolution law.
Process: Creditor-in-control, NCLT-adjudicated CIRP; supersedes SARFAESI, DRT, SICA regimes.
Geography: Applicable pan-India; nine years of operation till FY 2024-25.
Quick Facts for MCQs
Legal & Policy
- Amendment-2017 introduced Section 29A, enforcing promoter accountability.
- Amendment-2024 mandates digital filings, tighter admission timelines.
- PUF transaction scrutiny strengthens transparency, creditor recoveries.
Economic Angle
- Liquidity improvement 80 % underscores restored cash flows.
- Revived companies attract fresh investment, driving capex 130 %.
- Steel, power, infrastructure sectors witnessed notable job retention.
Institutional Challenges
- Infrastructure deficit causes half-day NCLT sittings, case pile-ups.
- Manpower gaps due to reliance on deputation staff hamper continuity.
- Need for dedicated IBC vertical and National Court Management System flagged.
Key Data Points
| Feature | Data-Point |
|---|---|
| Launch year | 2016 |
| Debt resolved (FY17-25) | ₹26 lakh crore |
| Pre-admission settlements | 30,310 cases; ₹13.78 lakh crore defaults |
| Post-admission resolutions | 1,314 cases |
| Withdrawals u/s 12A | 1,919 cases |
| Gross NPA ratio drop | 10.9 % (FY18) → 2.3 % (FY25) |
| Net NPA ratio FY25 | 0.5 % |
| Average overdue days | 248–344 → 30–87 |
| Section 29A purpose | Bars defaulting promoters from bidding |
| Section 32 focus | No immunity for pre-insolvency crimes |
| Resolution time cap | 330 days (2019 amend.) |
| Homebuyers status | Financial creditors since 2018 |
| COVID suspension window | Defaults after 25 Mar 2020 excluded |
| MSME pre-pack start | 2021 |
| Market cap revival | ₹2 lakh cr → ₹6 lakh cr |
| Sales growth post-resolution | 76 % |
| Capex rise post-resolution | 130 % |
| Employment & wages rise | 50 % |
Related UPSC Prelims PYQs
हाल ही में, भारतीय बैंकों और वित्तीय संस्थाओं द्वारा ‘इंटर-क्रेडिटर एग्रीमेंट’ (Inter-Creditor Agreement) पर हस्ताक्षर करने का क्या उद्देश्य था?
भारतीय दिवाला और शोधन-अक्षम बोर्ड (IBBI) किस वर्ष में स्थापित किया गया था?



