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

A decade after the Insolvency and Bankruptcy Code (IBC) promised faster resolution of stressed companies, India's insolvency tribunal has delivered its strongest quarterly performance yet. The National Company Law Tribunal (NCLT) approved a record 78 resolution plans worth ₹5,517.66 crore in the April-June quarter, despite grappling with vacancies and a mounting case backlog.

The milestone comes weeks after the IBC completed a decade since receiving the President's assent on 28 May 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), released on 13 July, the number of resolution plans approved during the quarter surpassed the previous first-quarter record of 73 in April-June 2024, and was significantly higher than the 58 plans approved during the period last year.

Among the largest resolutions cleared during the quarter 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).

The performance suggests an improvement in the pace of insolvency resolution under the IBC at a time when lenders, insolvency professionals and investors have repeatedly flagged delays in concluding corporate insolvency resolution processes due to judicial bottlenecks.

Besides approving 78 resolution plans, the tribunal disposed of 1,676 interlocutory applications (IAs) in the main insolvency proceedings and decided another 68 IAs alongside the resolution plans, reflecting efforts to reduce procedural bottlenecks in insolvency cases.

Interlocutory Applications (IAs) are applications filed before the tribunal during an ongoing insolvency case, seeking specific orders or directions on procedural or legal issues before it delivers a final decision.

As per the report, since the IBC came into force, the tribunal has approved 1,628 resolution plans involving an aggregate approved value of over ₹4.78 lakh crore. Resolution approvals have steadily risen over the years, increasing from 19 in FY18 to a record 288 in FY25, before moderating to 257 approvals in FY26. The strong start to FY27 indicates that the tribunal has maintained a robust pace.

Even so, the pipeline of pending matters remains substantial.

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

Among the benches, the Mumbai Bench approved the highest number of resolution plans at 18, followed by the Kolkata Bench with 15 and the Principal Bench and New Delhi benches, which together cleared 13 plans. The Chandigarh Bench approved seven plans, Allahabad five, Ahmedabad, Bengaluru, Chennai and Indore three each, while Cuttack and Hyderabad approved two plans apiece.

In value terms too, the Mumbai Bench accounted for the largest share of approved resolution plans at more than ₹2,528 crore, followed by the Principal Bench and New Delhi benches, which together approved plans worth over ₹1,101 crore. Kolkata and Chandigarh also recorded significant resolution values during the quarter.

Despite the improved performance, the tribunal acknowledged continuing capacity constraints. As of 13 July 2026, against a sanctioned strength of 31 judicial members and 31 technical members, the NCLT was functioning with 26 judicial members and 25 technical members, leaving 11 vacancies.

The report noted that no judicial or technical members have been appointed since January 2025. The only appointment during the period was that of Justice (Retd.) Anupinder Singh Grewal as president of the NCLT.

On 29 April, the Supreme Court took suo motu cognizance of delays in NCLTs, calling for urgent action to address vacancies and infrastructure gaps that were affecting the effectiveness of the insolvency framework.