Delay in Approval
SC flags delay by NCLTs in approving IBC plans, calls for data, reasons
This story was originally published at 11:54 IST on 20 April 2026
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NEW DELHI – The Supreme Court has flagged delay in approval of resolution plans by various benches of the National Company Law Tribunal and said that it has taken a serious note of the issue. The court has made the Insolvency and Bankruptcy Board of India as a party in the case and sought its reply. The bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan asked the Insolvency and Bankruptcy Board of India to give data on the number of pleas pending before the benches of the National Company Law Tribunal for approval of resolution plans for debt-ridden companies.
The top court said it was unfortunate that an application for approval of a resolution plan for AVJ Developers (India) Pvt. Ltd. was pending before the principal Delhi bench of the National Company Law Tribunal for two years. The court asked the Delhi bench of the tribunal to state how many applications for approval of resolution plans were pending before it, for how long they were pending, and why the approval applications have not been adjudicated upon till date.
The apex court asked the parties to give their report within two weeks. The top court said it will decide on further course of action after examining the statistics on pending approval plans. It will hear the matter next on Apr. 29 at 1400 IST.
The top court was hearing a plea by the AVJ Heights Apartment Owners Association and another by a suspended director of AVJ Developers. The petitioner had challenged a National Company Law Tribunal's 2023 order which upheld the admission of IIFL Finance Ltd.'s claim in the insolvency process of AVJ Developers.
At 1147 IST, shares of IIFL Finance were down 0.8% at INR 469.60 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Surya Tripathi
Edited by Ashish Shirke
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