The NCLT approved 78 corporate resolution plans in the April-June 2026 quarter, the highest since the IBC started in 2016. Investors should track this as it speeds up debt recovery for lenders and impacts assets of distressed firms. However, a shortage of members at the tribunal continues to pose risks of potential delays in future cases.
The National Company Law Tribunal (NCLT) cleared a record 78 corporate insolvency resolution plans between April and June 2026. This performance marks the fastest pace of approvals for the tribunal since the Insolvency and Bankruptcy Code (IBC) was introduced in 2016. These plans involved a total approved value of ₹5,517.66 crore, signaling a busy period for corporate restructuring and debt settlement in India.
Regional Performance and Financial Scope
The Mumbai Bench led the country in resolution activity, approving 18 plans that account for ₹2,528.45 crore of the total value. The Principal Bench and New Delhi Bench combined to clear 13 plans worth ₹1,101.46 crore, while the Kolkata Bench approved 15 plans totaling ₹507.88 crore. Beyond these main resolutions, the tribunal processed 1,676 interlocutory applications related to ongoing insolvency matters and another 68 applications linked directly to resolution plans. Since the inception of the IBC, the NCLT has now approved 1,628 resolution plans, with a total value surpassing ₹24.78 lakh crore.
Capacity Constraints and Regulatory Risks
While the Q1 results show a rise in activity, the NCLT faces operational hurdles that investors should monitor. As of July 13, 2026, the tribunal is operating with only 26 Judicial Members and 25 Technical Members. This is below the sanctioned strength of 31 for both categories. No new members have been added to the tribunal since January 2025, aside from the appointment of Justice (Retd.) Anupinder Singh Grewal as President. This shortage of personnel creates a risk of delays in legal proceedings, which can extend the time creditors wait to recover funds or resolve issues within distressed companies.
There are currently 349 applications pending and 38 matters awaiting final orders. For investors, the speed of these approvals is important as it affects how quickly assets are monetized or how companies exit bankruptcy. A faster resolution process typically helps banks and financial institutions clean up their balance sheets by reducing the time non-performing assets stay on their books. However, until the tribunal fills its vacant positions, the risk of a backlog in complex cases remains a key point to track for those following the insolvency space.