NCLT records best quarter under IBC, approves 78 resolution plans worth ₹5,517.66 crore | Today’s news

Ten years after the Insolvency and Bankruptcy Code (IBC) promised faster resolution of troubled companies, India’s insolvency tribunal has delivered its strongest quarterly performance yet. The National Company Law Tribunal (NCLT) has approved a record 78 value resolution plans ₹5,517.66 crore in the April-June quarter despite facing vacancies and a mounting backlog.

The milestone comes weeks after the IBC completed ten years of receiving the President’s assent on May 28, 2016.

According to the tribunal’s report Performance of the National Company Law Tribunal under the Insolvency and Bankruptcy Code – First Quarter (April–June 2026), published on 13 July, the number of resolution plans approved during the quarter surpassed the previous first quarter record of 73 in April to June 2024 and was significantly higher than the previous period of approved plans55.

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Among the largest resolutions passed during the quarter was Morarjee Textiles Ltd ( ₹892.3 crore), Rajesh Business and Leisure Hotels Pvt. Ltd ( ₹730 crore), Adel Landmarks Ltd ( ₹461.75 crore), Avani Project & Infrastructure Ltd. ( ₹330.71 crore) and Amar Prakash Developers Pvt. Ltd ( ₹259.86 million crowns).

The performance indicates an improvement in the pace of insolvency resolution under the IBC at a time when creditors, insolvency professionals and investors have repeatedly raised the issue of delays in concluding corporate insolvency resolution processes due to judicial hurdles.

In addition to approving 78 resolution plans, the tribunal dealt with 1,676 Interim Applications (IA) in main insolvency proceedings and decided a further 68 IAs alongside resolution plans, reflecting efforts to reduce procedural hurdles in insolvency cases.

Interim applications (IAs) are applications made to the tribunal during an ongoing insolvency case that seek specific orders or directions on procedural or legal issues before it makes a final decision.

According to the report, since the IBC came into force, the tribunal has approved 1,628 resolution plans with a total approved value of over ₹4.78 million crowns. Resolution approvals have risen steadily over the years, from 19 in FY18 to a record 288 in FY25, before easing to 257 approvals in FY26. A strong start to FY27 suggests the tribunal has maintained a robust pace.

Nevertheless, a number of outstanding issues remain significant.

As on 30 June 2026, 349 applications for approval of resolution plans were pending before various NCLT benches, while 38 matters were heard and reserved for orders, indicating that several more approvals could be delivered in the coming months.

Among the Benches, the highest number of resolution plans was approved by the Bombay Bench with 18, followed by the Calcutta Bench with 15 and the Principal Bench and New Delhi Benches which together approved 13 plans. The Chandigarh Bench approved seven plans, Allahabad five, Ahmedabad, Bengaluru, Chennai and Indore three each, while Cuttack and Hyderabad approved two plans each.

Read also | Supreme Court draws attention to delays in insolvency, takes suo motu cognizance of loopholes in NCLT

Also in terms of value, the Mumbai Bench accounted for the largest share of approved resolution plans amounting to more than ₹2,528 crore, followed by the Principal Bench and New Delhi which together approved plans worth over ₹1,101 million. Kolkata and Chandigarh also saw significant resolution figures during the quarter.

Despite the improved performance, the tribunal recognized continued capacity constraints. As on 13 July 2026, the NCLT was functioning at the sanctioned strength of 31 Judicial Members and 31 Technical Members with 26 Judicial Members and 25 Technical Members, leaving 11 vacancies.

The report states that no judicial or technical members have been appointed since January 2025. The only appointment during this period was that of Justice Anupinder Singh Grewal as President of NCLT.

On April 29, the Supreme Court took suo motu cognizance of the delays in the NCLT and called for urgent measures to address vacancies and infrastructural deficiencies that were affecting the effectiveness of the insolvency framework.

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