The Supreme Court on Tuesday expressed concern over delays by the National Company Law Tribunal (NCLT) in approving resolution plans for the revival of financially ailing companies under the Insolvency and Bankruptcy Code. It also sought details on the number of applications for approval of resolution plans pending before the Tribunal across the country, the duration of such pendency, and the reasons thereof.
Granting two weeks to the NCLT to furnish the information, a Bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan impleaded the Insolvency and Bankruptcy Board of India (IBBI) as a respondent in the matter and directed it to furnish the information sought by the Court from the National Company Law Tribunal.
“We direct the IBBI to provide us with the necessary figures and statistics across the country for the queries set out… Let the necessary reports come on record within a period of two weeks from today,” the Court said in its order.
After examining the statistics, the court said, we will decide as to what further course of action, if any, is to be adopted.
The Court appointed senior advocates Gopal Jain and Navin Pahwa as amici curiae to assist it in the matter. The order was passed on Thursday last. The Bench directed that the matter be listed for further hearing on April 29, 2026. The order came during the hearing of a case involving AVJ Heights Apartments Owners Association (appellant) versus IIFL Finance Limited and others (respondents).
The Court found it disturbing that a resolution plan approved by the Committee of Creditors (CoC) had been awaiting approval from the NCLT for nearly two years. The CoC approved the plan on July 4, 2024, and the application seeking approval was filed on July 12, 2024, before the NCLT Principal Bench, New Delhi.
“We take a very serious note of the matter that the plan, as approved by the CoC, is awaiting approval of the adjudicating authority for almost two years,” the Court said. Terming the situation “very unfortunate”, it noted that “there has been no adjudication on the approval for approximately two years.”
Further observing that “many such approval applications are pending with the NCLT Principal Bench, New Delhi, and also other Benches for several years”, the Court asked the Principal Bench of the NCLT to provide details on how many such applications are pending, the duration of pendency, and the reasons why they have not been adjudicated upon to date.
The Court also asked the advocates appearing for the parties to assist by providing relevant information sought from the Principal Bench of the NCLT.
Directing its Registry to amend the cause title, the Court issued notice to the Insolvency and Bankruptcy Board of India.