The National Company Law Tribunal (NCLT) approved a record number of corporate insolvency resolution plans (CIRPs) in the first quarter of FY27, even as it continued to grapple with a shortage of members and a large pipeline of pending cases awaiting final approval.
Between April and June 2026, the tribunal approved 78 resolution plans – its highest-ever tally for the first quarter since the insolvency and bankruptcy code (IBC) came into effect in 2016 – which is 34% higher than 58 plans cleared in the corresponding period last year. The approved plans involved assets worth Rs 5,517.7 crore, as per an official note.
The tribunal improved its quarterly performance despite facing capacity constraints. As on July 13, the NCLT was functioning with 11 vacancies, operating with just 26 judicial members and 25 technical members against the sanctioned strength of 31 each. No appointments to either category of members have been made since January 2025, barring the appointment of Justice (Retd.) Anupinder Singh Grewal as NCLT president.
Despite higher disposals, the tribunal continues to face a significant backlog. As on June 30, 349 applications seeking approval of resolution plans remained pending before various NCLT benches, while another 38 matters had already been heard and reserved for orders.
The quarterly data also points to the geographical concentration of insolvency resolutions. While the Mumbai benches led the country by approving 18 resolution plans during the quarter, Kolkata followed with 15 and the Principal Bench and New Delhi benches with 13. Together, these three centres accounted for nearly 60% of all resolution plans approved during the period.
In the first quarter of FY27, the value of approved plans remained concentrated in a handful of large cases. For instance, the biggest resolutions during the quarter were Morarjee Textiles (Rs 892.3 crore), Rajesh Business and Leisure Hotels (Rs 730 crore), Adel Landmarks (Rs 461.8 crore), and Avani Project & Infrastructure (Rs 330.7 crore).
Further, the data shows that the NCLT’s resolution plan approvals have increased sharply over the past 8 years which reflects the gradual maturing of the insolvency framework. Annual approvals rose from just 19 plans in FY18 to 81 in FY19. From FY22, the pace accelerated steadily, with 157 plans approved, 208 in FY23, and a record 288 in FY25.
Although approvals moderated to 257 in FY26, the record first-quarter performance of FY27 suggests the tribunal could regain momentum if the current pace is sustained. Cumulatively, the NCLT has approved 1,628 resolution plans involving an aggregate value of Rs 4.78 lakh crore since the inception of the IBC.
