New Delhi, Feb. 16 -- Financial creditors are now leading the charge at bankruptcy tribunals, overtaking the vendors and service providers who once dominated filings under the Insolvency and Bankruptcy Code (IBC). The shift marks a turning point in how the law is being used: less as a pressure tactic for recovering trade dues and more as a lender-driven restructuring framework.

Data from the Insolvency and Bankruptcy Board of India (IBBI) shows that banks and other financial creditors accounted for 47% of cases admitted between April and December, compared with 33% by operational creditors. The rest of the cases were initiated by the companies themselves.

In the December quarter, the difference is starker: 67% of the cases were initiate...