The National Company Law Tribunal approved 78 corporate resolution plans worth ₹5,517 crore in the first quarter of FY27. While this marks a record for the number of cases resolved, the average deal value has dropped significantly. Investors should note that large-scale defaults remain trapped in long legal battles, complicating value recovery for creditors and stakeholders.
The National Company Law Tribunal (NCLT) has set a new record by approving 78 resolution plans in the first quarter of the 2027 fiscal year, spanning April to June. With a total value of ₹5,517 crore, this quarter saw the highest number of approvals since the Insolvency and Bankruptcy Code (IBC) was implemented. While the sheer volume suggests an improvement in the speed of the insolvency process, the data reveals a shift in the type of companies being resolved.
Shrinking Average Deal Values
A closer look at the financial data shows that the average size of insolvency cases has decreased sharply. The average value per resolution plan has fallen significantly from ₹1,481 crore in fiscal year 2018-19 to roughly ₹166 crore in 2025-26. This trend indicates that the tribunal is currently processing many smaller and mid-sized corporate defaults. Larger, more complex cases, which often hold higher debt and asset value, continue to face substantial hurdles that prevent quick resolution.
Impact of Extended Litigation
The most significant challenge facing the insolvency framework remains the timeline for high-value cases. The five largest resolutions approved this quarter, which account for nearly half of the ₹5,517 crore total, took between 1,169 and 2,722 days to finalize. For example, the resolution for Adel Landmarks Ltd took 2,722 days, while the process for Avani Projects & Infrastructure Ltd required 2,658 days. Morarjee Textiles Ltd, which had the largest single approved value of ₹892 crore for the quarter, took 1,311 days to conclude. These prolonged timelines often lead to erosion in the value of assets, which can directly affect how much money creditors ultimately recover.
Geographic Concentration of Resolutions
Regional data further illustrates the uneven nature of these resolutions. The Mumbai Bench of the NCLT alone accounted for 45.8% of the total value of approved plans this quarter. When combined with the Principal Bench in New Delhi and the Kolkata Bench, these three locations managed to handle three-fourths of the total approved resolution value. This concentration suggests that judicial capacity and the maturity of the local insolvency ecosystem play a major role in how quickly cases move toward completion.
What Investors Should Monitor
For investors and creditors, the gap between the resolution of smaller cases and the backlog of larger ones is a primary concern. While the current record for the number of plans indicates that the system is functioning, the failure to meet the IBC's 330-day target for large cases remains a persistent risk. The next important update for stakeholders will be whether judicial reforms or process adjustments can reduce these long delays, as the time taken to resolve a default is often the biggest factor in determining the final recovery value for lenders and shareholders.