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Journal of Statistics and Management Systems cover

Journal of Statistics and Management Systems

(Since 1998)
Hybrid ·Peer-reviewed·ISSN (Online): 2169-0014·ISSN (Print): 0972-0510

Indexed in ABDC Australia

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Monthly Journal: Publishes peer-reviewed aticles on theoretical and applied statistics and management systems, expoloring industrial statistics, actuarial and decision sciences.

Issues up to 2022 co-published with and available at:Taylor & Francis Online
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Journal of Statistics and Management Systems
Open Access Research Article

Mapping inputs, processes, and outcomes of insolvency and bankruptcy code (IBC)

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pp. 1355–1372Vol. 28Issue 8November 2025DOI: 10.47974/JSMS-1501XML
Received:
08 Apr 2025
Published Online:
24 Nov 2025
Article type:
Research Article
Language:
EN
Article no.:
JSMS-1501
Pages:
1355–1372

Abstract

This study critically examines the inputs, processes, and outcomes of the Insolvency and Bankruptcy Code (IBC), 2016, positioning it as one of India’s most significant economic and financial reforms aimed at strengthening creditor recovery and sustaining economic stability. Using secondary data from the annual reports of the Insolvency and Bankruptcy Board of India (IBBI), the research evaluates key variables including the number of admitted cases, withdrawals under Section 12A, appeals, reviews, settlements, cases under resolution, and liquidations. The analysis highlights a worrying trend of increasing insolvency cases alongside declining resolution rates, rising liquidations, and substantial haircuts, which collectively reflect a drift from the IBC’s core objectives of achieving timely and value-maximizing resolutions. Even in resolved cases, the prevalence of steep haircuts raises concerns over the protection of financial creditors’ interests and the overall effectiveness of the framework. These findings underscore the urgent need for policy interventions and targeted reforms to realign the IBC with its intended purpose. Strengthening the resolution process, improving time-bound outcomes, and ensuring higher value recovery are essential to safeguard the interests of banks, businesses, and other stakeholders, while reinforcing public confidence in the insolvency ecosystem and contributing to sustainable economic growth and sound public policy.

Keywords

Insolvency and bankruptcy code (IBC)Financial creditorsResolution processLiquidationSection 12AHaircutTime-bound resolutionPublic policyIndian economy

Subject Classifications

G33K22G28E44

References

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[2] U. Bose, S. Filomeni, and S. Mallick, “Does bankruptcy law improve the fate of distressed firms? The role of credit channels,” Journal of Corporate Finance, vol. 68, Art. no. 101836 (2021): https://doi.org/10.1016/j.jcorpfin.2020.101836
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[6] S. Gupta, “Resolution vs. Liquidation Under IBC,” Journal of Corporate Laws and Commercial Regulations, vol. 2, no. 2, pp. 1–15 (2019) : 10.58426/CGI.V1.I2.2019.20-33.
[7] Indian Institute of Insolvency Professionals of ICAI (IIIPI), Timely Turnaround: Bottlenecks in CIRP and Liquidation under IBC Case Studies (Aug. 2024).
[8] S. Dalal, “Stop the loot via bankruptcy code: Better solutions are possible,” Moneylife, Jun. 30 (2021). Available: https://www.moneylife.in/article/stop-the-loot-via-bankruptcy-code-better-solutions-are-possible/64378.html
[9] Policy Circle Bureau, “Changes needed in IBC,” Policy Circle, May 20 (2024). Available: https://www.policycircle.org/policy/changes-needed-in-ibc/

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