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NCLT reported its strongest-ever quarterly performance under IBC, approving 107 resolution plans worth Rs. 11,071 crore. ICRA believes that sustaining this momentum throughout the rest of FY2027 would be critical, as NCLT is operating with only 77% of its sanctioned strength.

The National Company Law Tribunal (NCLT) reported its strongest-ever quarterly performance in Q2 FY2027 since its inception under the Insolvency and Bankruptcy Code (IBC). It approved 107 resolution plans worth Rs. 11,071 crore, surpassing 60 plans approved in Q1 FY2026. The recovery amount was also higher in Q2 FY2027 as more large ticket size cases were approved. The number of plans approved in H1 FY2027 stood at 185, up ~80% from 105 in H1 FY2026. As on September 30, 2026, the NCLT had approved a cumulative 1,735 resolution plans since the IBC’s enactment, involving an aggregate approved value of Rs. 4.89 lakh crore, while 294 resolution plan applications remained pending and 41 matters were reserved for orders.

Some of the improved throughput can be attributed to the various changes brought about in the processes such as a new reporting mechanism, which provides a real-time and holistic picture of the workload and pendency across the NCLT benches, enabling it to take more informed decisions on the redistribution of cases, wherever required. The NCLT has also introduced a new framework for the registration and listing of cases, which provides for appropriate prioritisation of older pending matters, including priority to IBC admission matters and applications relating to the approval of resolution plans.

However, the tribunal continues to face staffing constraints, operating with 14 vacancies. This could dampen the momentum through the rest of FY2027, especially in light of the fact that it is currently functioning with only 77% of its sanctioned strength and four more members are due to demit office by the end of December 2026.

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