NCLT clears record 107 insolvency plans in Q2 despite staffing gaps

The National Company Law Tribunal (NCLT) has achieved a significant milestone by approving 107 insolvency resolution plans during the second quarter of FY2026-27, according to tribunal data released this week. The approved plans carried a combined value exceeding ₹11,071 crore, reflecting sustained momentum in India's corporate insolvency resolution mechanism despite ongoing operational challenges.

For the first half of the financial year spanning April to September, the tribunal's benches across the country have now sanctioned 185 resolution plans. This performance underscores the tribunal's expanding capacity to process complex insolvency cases and facilitate the revival of stressed assets, a critical objective of the Insolvency and Bankruptcy Code framework introduced in 2016.

The approvals come against a backdrop of persistent operational hurdles. The tribunal continues to grapple with member vacancies across its various benches and faces infrastructure constraints that have periodically strained its case management capabilities. These limitations have not prevented the tribunal from delivering strong approval numbers, though industry observers note that addressing staffing gaps remains essential for sustaining this trajectory.

The record approvals in Q2 suggest that the tribunal's streamlined processes and the maturity of the insolvency regime are enabling faster resolution of corporate distress. As India's economy navigates cyclical challenges, the NCLT's improved performance offers creditors and promoters greater clarity on timelines and recovery prospects in distressed company proceedings.