MCA Reports 30,745 Pre-Admission Insolvency Settlements Involving Rs 13.94 Lakh Crore

The Insolvency and Bankruptcy Code (IBC) has helped settle 30,745 insolvency applications involving defaults of Rs 13.94 lakh crore before their admission into the Corporate Insolvency Resolution Process (CIRP), according to the Ministry of Corporate Affairs’ Annual Report 2025–26.

The ministry said the figures indicate that companies are increasingly resolving financial stress at early stages to avoid formal insolvency proceedings. Settlements have taken place before filing applications, after filing but before admission, and during the resolution process. Since the implementation of the IBC, 8,833 CIRPs had commenced till December 31, 2025. Creditors recovered Rs 4.11 lakh crore through approved resolution plans, amounting to 31.63% of admitted claims and 171.54% of liquidation value.

The report also stated that 1,788 avoidance applications involving transactions worth Rs 4.28 lakh crore were filed by resolution professionals and liquidators.