Over 380 IBC Resolution Plans Await NCLT Clearance; SC Seeks Status Report

New Delhi, Apr 29 (KNN) More than 380 creditor-approved corporate resolution plans are pending clearance before various benches of the National Company Law Tribunal (NCLT).

The Insolvency and Bankruptcy Board of India (IBBI) and the tribunal are set to apprise the Supreme Court, Mint reported, citing two persons familiar with the development.

The development follows the apex court’s direction to the NCLT’s Principal Bench in New Delhi to furnish details on pending resolution applications, their duration, and reasons for delays in adjudication.

Court Flags Delay Concerns

The directive came during a hearing in a dispute involving the AVJ Heights Apartment Owners Association and IIFL Finance Ltd on April 16. 

The court also impleaded the IBBI in the matter, signalling concern over delays in approving resolution plans already cleared by creditors.

Debt resolution under the Insolvency and Bankruptcy Code (IBC) has seen extensive litigation since its implementation, as stakeholders—including creditors, shareholders and investors—have approached courts to safeguard their interests.

Gap Between Timelines and Implementation

Experts note that the delays highlight a widening gap between the IBC’s time-bound framework and its actual implementation. The law mandates completion of the resolution process within 330 days, including extensions and litigation.

Sub­odh Dandawate, Asso­ciate Dir­ector, Reg­u­lat­ory Advis­ory at Nexdigm (pro­fes­sional ser­vices firm), said, “The (Supreme) Court’s inter­ven­tion should serve as a cata­lyst for urgent insti­tu­tional reform within the Nclt—through meas­ures such as con­sti­tut­ing ded­ic­ated com­pany law benches to de-clog pen­dency, eas­ing the tribunal’s bur­den by divert­ing routine mat­ters, enfor­cing stricter timelines, and curb­ing avoid­able adjourn­ments,” as quoted by Mint.

Rising Caseload and Delays

Data from the IBBI shows that between April and December 2025, NCLT admitted 513 new insolvency cases and closed 525, while approving resolution plans in 182 cases. As of December 2025, 1,879 cases remained pending at various stages.

On average, the 1,376 resolution plans approved so far have taken 619 days—well beyond the prescribed timeline. Around three-fourths of ongoing cases have been pending for over 270 days.

Complex Resolution Process

Under the IBC framework, once a case is admitted, a moratorium is imposed and creditors take control of the company through a resolution professional. 

The process often involves complex negotiations, multiple claims, and significant ‘haircuts’ for lenders, making timely resolution a persistent challenge for tribunals.

(KNN Bureau)