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Smaller companies dominate NCLT approvals while larger companies are bogged down by litigations The National Company Law Tribunal (NCLT) approved a record 78 resolution plans worth ₹5,517 crore in the first quarter (April-June) of FY27, the highest number of approvals for any first quarter since the Insolvency and Bankruptcy Code (IBC) came into force. However, while the volume of approvals has increased, the average value of each approved resolution plan has fallen sharply, highlighting that smaller insolvency cases are reaching closure faster than large corporate defaults. Data from the NCLT's quarterly performance report show that the average approved value per resolution plan has declined from ₹1,481 crore in 2018-19 to ₹166 crore in 2025-26. Since 2017, the tribunal has approved 1,628 resolution plans worth a cumulative ₹4.78 lakh crore. The pipeline has focused more on smaller and mid-sized companies due to expedited processes, while many large cases remain bogged down in litigation and repeated bidding. The increase in smaller resolved cases dilutes the average, highlighting delays in larger accounts, said Mayank Garg, Executive Director- Risk Advisory, Nangia & Co LLP. Sonam Chandwani, Managing Partner, KS Legal & Associates, said the record number of approvals reflects the growing maturity of the insolvency ecosystem. Tribunals have been clearing legacy matters, creditors have become more pragmatic in evaluating haircuts and the market for distressed assets has matured considerably. However, an insolvency framework derives its strength not merely from the number of cases it resolves, but from the speed and value preservation it delivers, she said. High-value cases The tribunal's data also show that delays remain most pronounced in high-value insolvency cases. The five largest resolution plans approved during the quarter--together worth ₹2,675 crore, nearly half of the total value approved--took place between 1,169 and 2,722 days from the date of default to resolution. Among them, Adel Landmarks Ltd took 2,722 days to reach resolution, while Avani Projects & Infrastructure Ltd took 2,658 days. Even Morarjee Textiles Ltd, with the quarter's largest approved resolution value at ₹892 crore, took 1,311 days to conclude. Large cases Experts stated that prolonged litigation, judicial capacity constraints and cautious bidding continue to delay large insolvency cases, making the IBC's 330-day resolution timeline difficult to achieve. The concentration of approvals also remained skewed towards a handful of tribunals. The Mumbai Bench alone accounted for 45.8 per cent of the total approved value during the quarter. While the Mumbai, Principal New Delhi and Kolkata benches together accounted for three-fourths of the approved value. Calling it a bifurcated reality , Ahmar Shad, Advocate, Delhi High Court, said IBC has been successful in strengthening credit discipline and encouraging out-of-court settlements. However, he said the formal insolvency framework remains burdened by procedural delays, making timely resolution of high-value cases its biggest challenge. www.thehindubusinessline.com, dt. 21-07-2026

Smaller companies dominate NCLT approvals while larger companies are bogged down by litigations

The National Company Law Tribunal (NCLT) approved a record 78 resolution plans worth ₹5,517 crore in the first quarter (April-June) of FY27, the highest number of approvals for any first quarter since the Insolvency and Bankruptcy Code (IBC) came into force. However, while the volume of approvals has increased, the average value of each approved resolution plan has fallen sharply, highlighting that smaller insolvency cases are reaching closure faster than large corporate defaults.

Data from the NCLT's quarterly performance report show that the average approved value per resolution plan has declined from ₹1,481 crore in 2018-19 to ₹166 crore in 2025-26. Since 2017, the tribunal has approved 1,628 resolution plans worth a cumulative ₹4.78 lakh crore.

The pipeline has focused more on smaller and mid-sized companies due to expedited processes, while many large cases remain bogged down in litigation and repeated bidding. The increase in smaller resolved cases dilutes the average, highlighting delays in larger accounts, said Mayank Garg, Executive Director- Risk Advisory, Nangia & Co LLP.

Sonam Chandwani, Managing Partner, KS Legal & Associates, said the record number of approvals reflects the growing maturity of the insolvency ecosystem. Tribunals have been clearing legacy matters, creditors have become more pragmatic in evaluating haircuts and the market for distressed assets has matured considerably. However, an insolvency framework derives its strength not merely from the number of cases it resolves, but from the speed and value preservation it delivers, she said.

High-value cases

The tribunal's data also show that delays remain most pronounced in high-value insolvency cases. The five largest resolution plans approved during the quarter--together worth ₹2,675 crore, nearly half of the total value approved--took place between 1,169 and 2,722 days from the date of default to resolution.

Among them, Adel Landmarks Ltd took 2,722 days to reach resolution, while Avani Projects & Infrastructure Ltd took 2,658 days. Even Morarjee Textiles Ltd, with the quarter's largest approved resolution value at ₹892 crore, took 1,311 days to conclude.

Large cases

Experts stated that prolonged litigation, judicial capacity constraints and cautious bidding continue to delay large insolvency cases, making the IBC's 330-day resolution timeline difficult to achieve.

The concentration of approvals also remained skewed towards a handful of tribunals. The Mumbai Bench alone accounted for 45.8 per cent of the total approved value during the quarter. While the Mumbai, Principal New Delhi and Kolkata benches together accounted for three-fourths of the approved value.

Calling it a bifurcated reality , Ahmar Shad, Advocate, Delhi High Court, said IBC has been successful in strengthening credit discipline and encouraging out-of-court settlements. However, he said the formal insolvency framework remains burdened by procedural delays, making timely resolution of high-value cases its biggest challenge.

www.thehindubusinessline.com, dt. 21-07-2026