Whalesbook
NCLT Cases Plummet Amidst Leadership Void
Corporate insolvency resolutions have reached their lowest point in thirteen quarters, with the National Company Law Tribunal (NCLT) resolving just 36 cases between January and March 2026. This represents a stark decline from the 70 cases resolved during the same period last year. February saw only eight approved plans, with March recording just seven.
Historical Lows and Systemic Bottlenecks
Data from the Insolvency & Bankruptcy Board of India (IBBI) indicates this was the worst March quarter for the resolution process since January-March 2022, when only 29 cases were approved. Insiders point to the absence of a full-time NCLT president since late January as the primary driver of this slowdown, exacerbated by existing vacancies within the tribunal. Officials, however, express optimism that the resolution process will regain momentum following the appointment of new president Justice Anupinder Singh Grewal in May.
Escalating Delays and IBC Amendments
The average time taken to close corporate insolvency cases has surged to 744 days, a notable increase from 713 days a year prior. This current duration is nearly three times the extended 270-day framework stipulated under the Insolvency & Bankruptcy Code (IBC), originally designed for expedited resolutions. The Supreme Court has recently voiced concerns over these protracted delays in approving resolution plans. Proposed amendments to the IBC aim to streamline the process, particularly addressing delays in case admission. IBBI chairman Ravi Mittal highlighted that recognizing records from Information Utilities (IUs) as sufficient proof of default will alleviate a key bottleneck previously causing prolonged litigation over evidence. The Ministry of Corporate Affairs and IBBI are also advocating for more NCLT benches, a proposal supported by a parliamentary committee, though it awaits government approval. Despite the challenges, IBC remains the preferred avenue for creditors seeking to recover dues.