30600 NCLT Cases Pending

30600 Cases Pending in NCLT – Read the Impact

The Economic Survey has noted that 30600 cases pending in NCLT for disposal, at the current rate, will take nearly 10 years. This substantially exceeds the Insolvency and Bankruptcy Code (IBC) to complete them within 330 days including extension.

Overall, the average duration taken to dispose of a case is 713 days.

And the duration taken for cases closed in 2025 is 853 days.

This represents the average closure duration exceeds 150% of the stipulated time.

Impact of Delayed Resolution:

• Asset Deterioration
• Employees Attrition
• Customer Base Shift to Competitor Business
• Partners and Suppliers Relationship Erosion

Urgent Requirement to Boost and Scale Up the NCLT Setup

Increase the number of NCLT Benches: Presently there are 30 NCLT Benches handling cases under Insolvency and Bankruptcy Code  and Companies Act jurisdictions.

Augment the Strength of Resolution Professionals (RPs) :  Presently there are 4527 RPs and out of which 49% i.e. 2196 RPs actually hold the active “authorization for assignment”.

Refinement and Trust Augmentation initiatives required for Pre-Packaged Insolvency Resolution Process:  The prepackaged insolvency resolution process was introduced in 2021, with a vision to provide simpler, faster and cost-effective alternative; but its takers have been few, as data shows that merely 14% admissions occurred in 4 years.

This is mainly because of the complexity of processing for target segment, low awareness among MSME groups, promoters and lenders. There is also underlying lower trust deficits regarding debtor-related processes. To aggravate it, small industries find themselves unable to fund the process.

Silver Lining – A Credible Score

During the last 9 years, the Insolvency and Bankruptcy Code has significantly and outstandingly contributed to safeguarding key national interests:

• Huge reductions in Non-Performing Asset ( NPAs) of Banking Sector
• Increased Credit Discipline
• Greater predictability in Insolvency outcomes
• From the 1300 cases, creditors recovered 94% of the fair value of the resolved businesses. This is 170% of the value that they would have received via liquidation.
• Creditors realized 3.99 lakh crores rupees .

Further Information for B2B or Enterprises

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