Only 15% of insolvency cases in company law tribunals were resolved during October-December 2022, according to IBBI data. Recoveries made in these cases was just 27% of the claimed amount. The remaining 45% were concluded through liquidation, 56% had resolution plans that were rejected and 33% of liquidations occurred because no resolution plans were received. Kotak Securities warned that the number of cases facing liquidation will likely remain high due to associated delays, but added that low admissions and resolution levels suggest Indian companies are comfortable on the whole.
