What concerns has the Supreme Court raised regarding the NCLT?

The Supreme Court has expressed concern over the National Company Law Tribunal's significant delays in approving insolvency resolution plans, noting that some applications have been pending for up to two years.

What role is the Insolvency and Bankruptcy Board of India playing?

The Insolvency and Bankruptcy Board of India has been asked to submit nationwide data on pending resolution plan approval applications before the NCLT.

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Supreme Court Flags NCLT's Insolvency Plan Delays

Q: What data has the Supreme Court requested from the NCLT?

The Supreme Court has directed the NCLT to provide details on the number of pending resolution plan approvals, the duration of such pendency, and the reasons for the delays.

21 Apr

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Summary

Supreme Court notes NCLT's lengthy delays in approving insolvency plans.
Applications for resolution plan approvals pending for up to two years.
Court seeks nationwide data on pending NCLT approval applications.

Supreme Court Flags NCLT's Insolvency Plan Delays

The Supreme Court of India has raised alarm over the National Company Law Tribunal's (NCLT) prolonged delays in approving resolution plans under the insolvency framework. A bench of Justices JB Pardiwala and KV Viswanathan deemed it "very unfortunate" that such applications remain undecided for extended durations, with some cases experiencing pendency of up to two years.

The Court's observations, made during a hearing concerning AVJ Developers (India) Pvt Ltd's insolvency proceedings, highlighted that numerous such applications are pending across various NCLT benches. Consequently, the principal bench in New Delhi has been directed to furnish comprehensive data detailing the number of pending resolution plan approvals, the duration of these delays, and their underlying reasons.