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NCLT Bankruptcy Case
The Insolvency and Bankruptcy Code (IBC) framework in 2025 was marked by mounting stress on timelines and capacity, with resolution processes stretching far beyond the statutory limits, despite efforts by the National Company Law Tribunal (NCLT) to cope with its limited capacity. Senior advocates and legal industry experts have voiced concerns over systemic delays, pointing to nearly 10,000 cases stuck at the admission stage, with recovery worth more than Rs 10 lakh crore locked in distressed assets, and to almost 24 of the 30 NCLT courts operating on half-day schedules. Delays stem not only from limited capacity but also from repeated adjournments, contested defaults, and excessive litigation under Section 60(5) of IBC. When asked about the overall functioning of NCLT, Senior Advocate Ramji Srinivasan told PTI: "There is a sense of disappointment." "The reasons for these are primarily not because of any lack of effort by the president of the NCLT, but the challenges that he faces
In a rare move, NCLT has recalled and set aside its own order directing insolvency proceedings against realty firm Logix Infrastructure in July 2023, saying the plea was initiated with "fraudulent and mala fide intentions" and a collusive petition was filed by the financial creditor. NCLT said "there is a nexus and connection" between its financial creditor Experts Realty Professionals whose plea for insolvency was initiated against Logix Infrastructure. The corporate tribunal said the entire transaction was "orchestrated" and forum was used "with purported malicious intent". The insolvency petition filed "with an ulterior motive" against Logix Infrastructure and its financial creditor has used this forum for purposes other than the insolvency resolution of the realty firm with purported malicious intent, contrary to the objectives of the IBC, the tribunal said. The National Company Law Tribunal (NCLT) also asked for a thorough probe by the Serious Fraud Investigation Office (SFIO)
Amid several bottlenecks, the Insolvency Bankruptcy Board of India (IBBI) declared 2023-24 as a landmark year, with the National Company Law Tribunal achieving a significant 43 per cent increase in resolutions, jumping from 189 cases last year to 270 this year. The IBBI is expected to submit a report to the government over the next 2-3 months for including mediation in the Insolvency and Bankruptcy Code (IBC), which is currently under discussion and scrutiny. The regulator is also working on prepackaged insolvency for large corporate cases, which is only allowed in MSME cases as of now. For the first time in a year, the number of outputs has increased from the number of inputs, reducing the pendency across India, said Sudhaker Shukla, an IBBI whole-time member, while addressing the CII organised 7th Insolvency and Bankruptcy Code conclave. He said that despite bottlenecks in the last seven years, resolution of 3.5 lakh crore was achieved, and 27,000 applications worth Rs 10 lakh cr