India witnessed the highest number of resolutions of insolvency cases in FY24, making it a ‘watershed year’ in the seven-year history of insolvency and bankruptcy law in the country.

According to data shared by Sudhaker Shukla, whole time member of the Insolvency and Bankruptcy Board of India (IBBI), resolutions were found in 270 cases in FY24, up from 189 in FY23.

“The year 2023-24 was a watershed year for insolvency law in the country. For the first time, output is exceeding input in a normal year. With the same infrastructure, the pendency at the macro level is going down,” Shukla said in Calcutta on Saturday at the 7th Insolvency & Bankruptcy Conclave organised by the CII.

He said 270 resolutions were found, surpassing the previous best of 189 in FY23 and the trend is likely to continue. The recovery in the resolved cases for financial creditors is about 33 per cent.

Since the inception of the Insolvency & Bankruptcy Code (IBC), creditors have recovered ₹3.5 lakh crore from resolutions. Moreover, 27,000 cases were withdrawn before the admission stage involving ₹10 lakh crore. “The credible threat of IBC has brought about a behavioural change in the mindset of creditors,” Shukla observed.

The regulator was working on ensuring faster resolutions with the help of artificial intelligence in the judicial system. An integrated case management system is being contemplated to help judicial members to take advantage of data.

The Conclave was attended by two judicial members of the Calcutta bench of the National Company Law Tribunal, Rohit Kapur and Bidisha Banerjee and Balraj Joshi, member technical, apart from P. Santhosh, managing director of NARCL. Several legal stalwarts in the field of IBC were also present.