Q1. With reference to the ten year journey of the Insolvency and Bankruptcy Code 2016 highlighted on 29 May 2026, consider the following statements:\n1. Of the 7102 closed cases as of March 2026, around 90 per cent culminated in liquidation while only 10 per cent yielded resolution plans.\n2. The recovery rate of Scheduled Commercial Banks under IBC declined from 36.6 per cent to 28.3 per cent in 2024-25.\n3. Realisations under approved resolution plans averaged about 95 per cent of fair value and 167 per cent of liquidation value of the corporate debtors.\nWhich of the statements given above is correct?
Explanation
Only statement 3 is correct. Statement 1 is wrong as around 58 per cent of closed cases (4099 of 7102) were rescued through resolution plans and 42 per cent went into liquidation. Statement 2 is wrong as the recovery rate rose to 36.6 per cent in 2024-25 from 28.3 per cent earlier.