New Delhi, April 2 -- The Insolvency and Bankruptcy Code, 2016 (IBC) has established itself as a consolidated framework for reorganisation, insolvency resolution, and liquidation of corporate persons, partnership firms, and individuals.

The primary objective of the code is to maximise the value of assets and it has significantly impacted the health of India's banking sector while redefining debtor-creditor relationships.

According to the Reserve Bank of India's Report on Trend and Progress of Banking in India released in December 2024, the IBC has emerged as the dominant recovery route for banks, accounting for 48 per cent of all recoveries.

Other recovery mechanisms include the SARFAESI Act at 32 per cent, Debt Recovery Tribunals at 1...