IBC Reforms: Push for Dedicated NCLT and NCLAT Benches
Why in the news
With IBC amendments expected in the Monsoon Session, the Parliamentary Standing Committee on Finance examined separate tribunals only for insolvency matters.
Key facts
| Measure | Days |
|---|---|
| IBC target for resolution | 330 |
| Actual average, resolution (IBBI, to March 2025) | 597 |
| Actual average, liquidation | 508 |
Concerns
- The Supreme Court’s Bhushan Power and Steel verdict, which overturned a resolution plan, adds uncertainty.
- One set of NCLT/NCLAT benches handles both company law and IBC, causing backlog, with no matching expansion.
Way forward
- Create IBC-exclusive NCLT and NCLAT benches.
- Hire more judicial and technical members; improve infrastructure, digitisation and case management.
- Amend law so resolution plans are not reversed years later, with clear rules on admission timelines, withdrawals and valuation.
Exam angle
- Data source: IBBI.
- Tribunals: NCLT and NCLAT.