Archive · 23 Dec 2025
India Needs a National Insolvency Tribunal
India has a law called the Insolvency and Bankruptcy Code (IBC) that helps companies in financial trouble.
The National Company Law Tribunal (NCLT) is supposed to handle cases under this law quickly, but it's also dealing with other company law cases.
This is causing delays, and the average time to resolve a case is now over two years.
The article suggests creating a new tribunal just for insolvency cases.
This would make the process faster and more efficient.
The other company law cases could be moved to the High Courts.
The article says this change is necessary to make the IBC work as it was intended.
The National Company Law Tribunal (NCLT) is currently handling both insolvency and company law cases, causing delays and backlogs.
The average time for resolving an insolvency case is 821 days, with 78% of cases exceeding the 270-day statutory limit.
A dedicated National Insolvency Tribunal is proposed to focus exclusively on insolvency matters, improving speed and efficiency.
Company law matters could be transferred to the commercial divisions of High Courts to ensure they receive the necessary judicial attention.
The proposed changes would require amendments to the Companies Act and corresponding rule changes, similar to the transition to the NCLT in 2016.
- Who
- The National Company Law Tribunal (NCLT) and the Indian government
- What
- The need for a dedicated National Insolvency Tribunal to improve the efficiency of the insolvency process in India
- When
- The current system has been in place for nearly a decade, and the need for reform is urgent
- Where
- India
- Why
- To address delays and backlogs in the insolvency process and to ensure the effectiveness of the Insolvency and Bankruptcy Code (IBC)
- Current Average Time for Resolution
- 821 days (688 days excluding excluded periods)
- Ongoing Corporate Insolvency Resolution Processes (CIRPs)
- 1,898
- CIRPs Exceeding 270-Day Statutory Limit
- 78%
- CIRPs Exceeding Two Years
- 61%
- Proposed Solution
- Dedicated National Insolvency Tribunal
- Current Adjudicatory Body
- National Company Law Tribunal (NCLT)
- Proposed Transfer of Company Law Matters
- Commercial divisions of High Courts
