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Supreme Court Intervenes on Chronic NCLT Backlog in Resolution Plan Approvals, Flags Systemic Crisis

By Communication Committee INSOL India Posted On : May 14, 2026


The Supreme Court took suo motu cognizance of systemic delays in the approval of resolution plans by the National Company Law Tribunals. A Bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan described the situation as “grim and dismal”.
This came in a case where the approval of resolution plan was pending adjudication for the last 2-4 years. 
SC noted that the details submitted before them by the Ld. Registrar of National Company Law Tribunal he key reasons for the delays in NCLT resolution plan approvals are:
  1. Severe shortage of members: The sanctioned strength of NCLT benches is 63 members, but only 28 judicial members and 26 technical members are currently in position.
  2. Inadequate infrastructure: The lack of adequate infrastructure has resulted in half-day sittings of the Benches.
  3. Frequent changes in bench composition: The deficit in members has led to frequent interchange of combinations, causing further disruptions and delays.
  4. Large number of stakeholder objections: A significant volume of objections filed by various parties and stakeholders against resolution plans has contributed to prolonged pendency.
  5. Contractual nature of the Registrar's post: The Supreme Court described this arrangement as "unheard of," highlighting its incompatibility with the role of a tribunal handling high-stakes commercial adjudication.
The cumulative effect of these factors has resulted in 383 applications pending approval, with delays ranging from 48 days to 738 days, and in some cases extending up to four years. The Supreme Court characterized the situation as "grim and dismal" and directed that the issues be addressed on a "war footing”.