NCLT logs best ever quarter under IBC, clears 78 resolution plans worth ₹5,517.66 crore

NCLT Logs Best Quarter Under IBC, Approves ₹5,517.66 Crore in Resolution Plans

Milestone Marks Steady Progress in Corporate Insolvency Resolution

NCLT logs best ever quarter under – In a significant development, the National Company Law Tribunal (NCLT) has recorded its best ever quarter under the Insolvency and Bankruptcy Code (IBC), clearing 78 resolution plans worth a combined ₹5,517.66 crore in the April-June 2026 period. This achievement underscores the tribunal’s growing efficiency in navigating the complex landscape of corporate insolvency, despite ongoing challenges such as vacancies and case backlogs. The IBC, introduced a decade ago on 28 May 2016, has been instrumental in streamlining the resolution process, and the NCLT’s latest performance highlights its continued role as a critical player in India’s financial recovery framework.

The NCLT’s quarterly report, released on 13 July 2026, revealed that the number of approved resolution plans in this quarter surpassed the previous record of 73 from April-June 2024. Notably, this marks a 12.4% increase compared to the 58 plans approved in the same period the prior year, reflecting a more than 10% improvement in case clearance rates. The surge in approvals comes as the IBC enters its 10th anniversary, a milestone that has sparked renewed discussions about the effectiveness of the law in addressing corporate distress. Stakeholders have praised the NCLT’s progress, though challenges like judicial vacancies and administrative bottlenecks remain.

The tribunal’s success in this quarter is evident in the resolution of large-scale cases. Among the notable approvals were 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 crore). These cases, which required coordinated efforts between creditors, debtors, and legal professionals, demonstrate the NCLT’s capacity to manage high-value insolvency proceedings. The improved performance aligns with the IBC’s goal of fostering a faster and more transparent resolution process, even as industry players have previously raised concerns about delays.

Complementing the resolution plans, the NCLT processed 1,676 interlocutory applications (IAs) during main insolvency proceedings and resolved 68 IAs in conjunction with the approved plans. These IAs, which are procedural requests filed during ongoing cases, address legal and administrative matters before final decisions are made. The tribunal’s ability to handle such applications efficiently underscores its adaptability in managing the multifaceted demands of corporate insolvency. The IBC’s structured approach has enabled the NCLT to balance speed with precision, ensuring that businesses in distress receive timely relief while maintaining legal rigor.

Over the past decade, the NCLT has approved a cumulative total of 1,628 resolution plans, with their combined value exceeding ₹4.78 lakh crore. This growth has been steady, rising from 19 plans in FY18 to a peak of 288 in FY25, followed by a slight dip to 257 in FY26. The strong start to FY27 indicates sustained momentum in the tribunal’s operations, driven by reforms and a more streamlined process. However, the volume of pending cases remains a concern, with 349 applications still awaiting resolution plan approvals as of 30 June 2026. The tribunal’s capacity to handle these cases will be crucial in maintaining its reputation as a key player in corporate insolvency.

Regional benches of the NCLT also contributed to the success of this quarter. Mumbai’s bench approved the highest number of plans, with 18 cases cleared, followed by Kolkata’s bench with 15. The Principal Bench and New Delhi collectively approved 13 plans, while Chandigarh handled seven. In terms of value, Mumbai accounted for over ₹2,528 crore in approvals, with the Principal and New Delhi benches contributing more than ₹1,101 crore combined. These figures highlight the uneven distribution of work across benches, yet the overall trend remains positive, reinforcing the NCLT’s role in the IBC’s implementation.

On 29 April 2026, the Supreme Court took suo motu cognizance of delays in NCLT proceedings, emphasizing the need for urgent action to address vacancies and infrastructure gaps. This intervention has put pressure on the tribunal to improve its efficiency, and the current quarter’s achievements suggest that such efforts are beginning to bear fruit. The NCLT is currently functioning with 26 judicial members and 25 technical members instead of the sanctioned 31 each, a situation that has persisted since January 2025. However, the recent appointment of Justice (Retd.) Anupinder Singh Grewal as president signals a renewed focus on resolving the bottlenecks.

As the IBC continues to shape India’s insolvency landscape, the NCLT’s best ever quarter under the law serves as a testament to its evolving capabilities. While challenges like staffing shortages and case backlogs remain, the tribunal’s ability to approve a record number of resolution plans demonstrates its resilience. This progress is not only a win for the NCLT but also for businesses seeking to revive operations and for creditors aiming to recover debts efficiently. The IBC’s framework, when executed effectively, remains a cornerstone of India’s economic recovery strategy, and the NCLT’s performance this quarter reinforces its importance in this process.