According to the government, there are over 21,000 cases pending before the National Company Law Tribunal (NCLT) as of the end of January this year. Of these, 12,963 cases are under the Insolvency and Bankruptcy Code (IBC), 1,181 cases are for mergers and amalgamations (M&A), and 7,061 are other cases. The pending cases have caused significant concern among resolution professionals and other stakeholders in the corporate world.
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In response to the backlog, the government has set up one principal bench and 15 other benches of NCLT, which are operational at present. However, there are no proposals to set up any new benches of NCLT or NCLAT, the National Company Law Appellate Tribunal, at this time. The government is establishing benches of these institutions in a phased manner based on the workload and other factors.
According to data provided by the Insolvency and Bankruptcy Board of India (IBBI), since the inception of IBC in 2016, a total of 6,199 Corporate Insolvency Resolution Processes (CIRPs) have commenced as of December 31, 2022. Of these, 611 CIRPs have yielded resolution, with realizable value to the financial creditors at approximately Rs 2.44 lakh crore.
The government is committed to resolving the backlog of cases pending before NCLT and NCLAT as soon as possible to ease the burden on the judicial system and provide relief to stakeholders affected by these cases.
