DFS Reviews Top Insolvency and Bankruptcy Code Cases, Urges Faster Resolution at NCLT

The Department of Financial Services (DFS) on Monday reviewed the progress of major cases under the Insolvency and Bankruptcy Code (IBC) to accelerate resolution and improve recovery outcomes.

The review meeting was chaired by DFS Secretary Shri M. Nagaraju, and attended by senior officials from the Department of Financial Services, top management of Public Sector Banks (PSBs), and representatives from the Insolvency and Bankruptcy Board of India (IBBI).

Progress in High-Value Insolvency Cases

During the meeting, officials acknowledged the progress made in resolving several high-value insolvency cases during the current year.

It was noted that twenty major accounts have already been resolved through admission, assignment or disposal at the National Company Law Tribunal (NCLT), reflecting coordinated efforts by banks, regulators and insolvency professionals.

These resolutions are part of ongoing efforts to strengthen the effectiveness of the IBC framework, which aims to ensure time-bound resolution of stressed assets while maximising recovery for lenders.

Review of Pending Cases

The meeting also undertook a detailed review of top insolvency cases that remain pending.

Officials examined:

• Twenty major accounts pending admission at NCLT

• Ten cases pending resolution under the insolvency process

The review focused on identifying bottlenecks that are slowing the progress of these cases and exploring ways to expedite their admission and resolution.

Banks Asked to Adopt Collaborative Approach

During the deliberations, banks were advised to adopt a collaborative and coordinated approach to resolve pending insolvency cases more effectively.

Officials stressed that cooperation among lenders is essential to:

• Maximise asset value

• Improve recovery rates

• Ensure time-bound resolution under the IBC framework

Reducing Delays in Insolvency Proceedings

The DFS also highlighted concerns regarding procedural delays and frequent adjournments in insolvency cases.

Banks were urged to strengthen their efforts in timely filing of Corporate Insolvency Resolution Process (CIRP) applications and minimise unnecessary delays in proceedings.

The Chief Executives of Public Sector Banks were advised to personally monitor high-value cases pending admission or resolution to ensure faster progress.

Focus on Strengthening Recovery Outcomes

The meeting concluded with a strong emphasis on expediting pending cases and addressing procedural inefficiencies in the insolvency resolution process.

Officials noted that faster resolution of stressed assets is critical for strengthening the banking system, improving credit flow and enhancing financial stability.

The review reflects the government's continued focus on improving the efficiency of the Insolvency and Bankruptcy Code mechanism, which remains a key tool for resolving corporate distress and recovering bad loans in the banking sector.