Adding NCLT courts and NCLAT Benches again spotlights a long-standing gap: insolvency adjudication expanded without matching capacity
NCLT was built for company law, then tasked with IBC cases without commensurate infrastructure, staff, or support systems
IBBI data shows 8,659 CIRPs admitted by September; 1,898 ongoing. Average timelines far exceed the IBC’s 330-day outer limit
When resolution drags on, asset value erodes and recoveries weaken, undermining the IBC’s promise of a swift, predictable exit
A select committee flagged no statutory timeline for NCLAT in proposed changes, urging disposal of appeals within three months
IBC has improved recoveries and discipline, but credibility depends on capacity, tech-enabled case management, and finality of resolution plans