NCLT Approves Record 78 Insolvency Resolution Plans Worth Rs 5517 Crore in Q1 FY2027

The National Company Law Tribunal (NCLT) approved a record 78 insolvency resolution plans worth a combined Rs 5,517.66 crore during the first quarter of FY2027 (April to June 2026). This represents the highest-ever Q1 performance in terms of approval of resolution plans since the Insolvency and Bankruptcy Code (IBC) was enacted in 2016. The data underscores the growing efficiency of the insolvency resolution framework in India, even as the tribunal continues to face challenges relating to judicial vacancies and a rising pendency of applications.

Bench-Wise Performance in Q1 FY2027

The Mumbai Bench of the NCLT led the country in resolution activity during Q1 FY2027, approving 18 plans worth Rs 2,528.45 crore. This performance reflects Mumbai's position as India's commercial capital and the headquarters of many companies undergoing insolvency proceedings. The Principal Bench and New Delhi Bench combined to clear 13 plans worth Rs 1,101.46 crore, while the Kolkata Bench approved 15 plans totalling Rs 507.88 crore. Other benches across the country accounted for the remaining approvals.

The geographic distribution of resolution plans provides insight into the concentration of corporate distress and resolution activity across different regions. Mumbai's dominance is consistent with the large number of corporate insolvency resolution processes (CIRPs) initiated in the western region, driven by the presence of major industrial, financial, and infrastructure companies.

Cumulative Performance Since Inception

On a cumulative basis, the NCLT has approved 1,628 resolution plans since the IBC came into force in 2016, with an aggregate approved value of over Rs 4.78 lakh crore. This decade-long track record demonstrates that the IBC framework has matured into a functional mechanism for resolving corporate distress, recovering value for creditors, and enabling the revival of viable businesses.

The IBC was designed to consolidate India's fragmented insolvency regime into a single, time-bound framework. Its implementation through the NCLT has transformed how corporate insolvency is handled in the country. The Supreme Court has on several occasions reinforced the objectives of the IBC and recommended amendments to strengthen protections for certain classes of creditors, including MSMEs.

Operational Challenges: Vacancies and Pendency

Despite the record Q1 performance, the NCLT continues to face significant operational challenges. As of June 30, 2026, 349 applications seeking approval of resolution plans remained pending before different benches of the tribunal, while 38 matters had been heard and reserved for orders. This pendency raises concerns about delays in the resolution process, which the IBC was specifically designed to address through its prescribed timelines.

A key contributing factor to the pendency is the shortfall in judicial and technical members. As of June 30, 2026, the NCLT was operating with only 26 Judicial Members and 25 Technical Members, against a sanctioned strength of 31 in each category. No new appointments of Judicial or Technical Members have been made since January 2025, with the only recent appointment being that of Justice (Retd) Anupinder Singh Grewal as President.

The shortfall in members directly affects the tribunal's capacity to hear and dispose of cases. With the number of insolvency applications continuing to rise, the gap between sanctioned and actual strength places additional pressure on existing members and contributes to delays that undermine the time-bound objectives of the IBC.

What the Numbers Mean for Stakeholders

For corporate stakeholders, the record Q1 numbers signal that the insolvency resolution process is functioning despite operational constraints. Financial creditors, operational creditors, and resolution applicants can take note that the NCLT continues to process plans at an increasing pace. Companies undergoing CIRP or considering resolution plans should be aware of the bench-wise workload distribution when assessing likely timelines. Businesses should also ensure their MCA compliance obligations are up to date, as regulatory standing can affect insolvency proceedings.

For the government and policy makers, the data reinforces the need to fill judicial vacancies at the NCLT promptly. The Ministry of Corporate Affairs, which oversees the regulatory compliance framework for companies, has a direct stake in ensuring that the tribunal operates at full capacity. Companies of all types, including Section 8 companies, fall within the NCLT's jurisdiction for insolvency matters.

The Way Forward

The record Q1 FY2027 performance is a positive indicator for India's insolvency resolution framework, but sustained progress will require addressing the structural challenges facing the NCLT. Filling judicial and technical vacancies to the sanctioned strength, establishing additional benches in regions with high case loads, and ensuring that the tribunal has adequate infrastructure are critical steps. Parties involved in insolvency proceedings should also be aware of their right to file an appeal before the NCLAT against NCLT orders within the prescribed time limits.

Key Takeaways

1. The NCLT approved a record 78 insolvency resolution plans worth Rs 5,517.66 crore in Q1 FY2027, the highest-ever first quarter performance since the IBC was enacted in 2016.

2. Mumbai Bench led with 18 plans (Rs 2,528.45 crore), followed by Kolkata (15 plans, Rs 507.88 crore) and the Principal Bench/New Delhi (13 plans, Rs 1,101.46 crore).

3. Cumulatively, 1,628 resolution plans with an aggregate value of over Rs 4.78 lakh crore have been approved since inception.

4. The NCLT faces operational challenges, with 349 pending applications and a shortfall of members (26 Judicial and 25 Technical) against the sanctioned strength of 31 each.

5. Addressing judicial vacancies and increasing bench capacity are critical to sustaining the efficiency of the insolvency resolution framework.