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

ENA Sectors 2026-04-29 16:20:59 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 courts direction to the NCLTs 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 IBCs 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) Courts 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 tribunals 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) 45966 https://knnindia.co.in/news/newsdetails/sectors/over-380-ibc-resolution-plans-await-nclt-clearance-sc-seeks-status-report 2026-04-29 16:20:59 knnindia.co.in Over 380 IBC Resolution Plans Await NCLT Clearance; SC Seeks Status Report