Budget 2024: More debt recovery tribunals on the table

A series of budget proposals have been announced to improve insolvency and debt recovery processes. These steps include reforming the Debt Recovery Tribunals and establishing additional such platforms.

North Block is also considering extending the Centre for Processing Accelerated Corporate Exit (CPACE) services for voluntary closure of LLPs to reduce liquidation time window.

On the success of the National Company Law Tribunals (NCLTs) under the Insolvency and Bankruptcy Code (IBC), Sitharaman said unpaid debt at more than 1,000 companies have been resolved, resulting in the direct recovery of ₹3.3 lakh crore for creditors. Also, 28,000 cases involving over ₹10 lakh crore were disposed of even before admission.


To expedite insolvency resolutions further, the government plans to implement appropriate changes to the IBC, reform and strengthen tribunals, and establish additional tribunals. The IBC has been recognised as an effective tool for addressing the twin balance sheet problem, where banks are burdened with NPAs and corporates are overleveraged, according to the survey.