Overview
- Acting Wednesday, a Supreme Court bench called delays in approving insolvency resolution plans at NCLT benches “grim and dismal” and sent the issue to the Chief Justice for further orders.
- A report before the Court recorded about 383 approval applications stuck across benches with delays from roughly 48 to 738 days, and in some cases stretching to four years.
- The Court noted a capacity crunch with only 54 of 63 sanctioned members in place, frequent bench reshuffles, half‑day sittings, a registrar on contract, and support staff with irregular pay.
- The bench asked the NCLT Principal Bench and the Insolvency and Bankruptcy Board of India to supply nationwide data on pendency and causes of delay, building on directions first issued on April 16.
- The Insolvency and Bankruptcy Code targets a 330‑day finish, yet IBBI data show approved plans have averaged about 619 days and nearly 1,879 cases were pending by December 2025, risking lower asset values and weaker creditor confidence.