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Informist, Wednesday, Apr. 29, 2026

 

NEW DELHI – Observing that the situation was extremely "grim and dismal", the Supreme Court Wednesday took suo motu cognisance of the delays by the various benches of national company law tribunals in approving resolution plans in the corporate insolvency resolution process of debt-ridden companies. "We take suo motu cognisance of the aforesaid (issue) in larger public interest. The issues need to be addressed on war footing. Otherwise, the purpose of enacting IBC (Insolvency and Bankruptcy Code, 2016) would stand frustrated. As we have taken suo motu cognisance, let the matter be placed before Chief Justice of India (Surya Kant) for further orders," said a bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan.

 

As per a report given by the registrar of tribunal's principal bench, there were 383 applications for resolution plans awaiting approval, said the apex court. There was a delay ranging from 48 days to 738 days in approving these plans, said the court, adding that in some cases it is up to four years. The reasons stated are lack of adequate infrastructure resulting in half day sittings due to interchange of combinations and large pendency of objections to the resolution plan by various parties and stakeholders, the court said. 

 

The top court noted that there was a severe shortage of judicial members in the tribunals. The statutorily sanctioned strength across the country for tribunals is 63 members, however, there are only 28 judicial members and 26 technical members posted across various benches, the court noted. There is an acute shortage of members which is severely affecting functioning of tribunals in a timebound manner, it noted.

 

The apex court said that the post of registrar in tribunals was being filled up on contractual basis. This is something unheard of, said the top court. Further, there are issues of non payment of salary and other allowances, it said.

 

Earlier this month, the Supreme Court had flagged delay in approval of resolution plans by various benches of the tribunal and said that it has taken a serious note of the issue. The court had made the Insolvency and Bankruptcy Board of India as a party in the case and sought its reply. The court had 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 court had asked the principal 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.  End

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

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