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MCA : NCLT Membership, IBC Case Pendency & Recovery Trend

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Overview on NCLT Membership, Case Pendency & IBC Recovery Trends (2019–2025)

Lok Sabha Questions by the Hon’ble MP Shri Tanuj Punia. sought year-wise details from 2019 to 2025 on Sanctioned vs. Functional Members (Judicial & Technical) in NCLT, the number of IBC cases exceeding 600 days for resolution & the average recovery rate under the Insolvency and Bankruptcy Code (IBC) In percentage terms & In absolute rupee value (amount realised vs. admitted claims)

Summarized Report NCLT Membership, Case Pendency & IBC Recovery Trends (2019–2025)

The Ministry of Corporate Affairs replies on 08 December 2025 that the Govt’s reply on NCLT membership strength, The total sanctioned strength of NCLT, including the president, is 63 members. The Ministry of Corporate Affairs provided data on NCLT’s functional strength, case delays under IBC, and recovery performance. NCLT Capacity Sanctioned strength is 63 members (including the president). & Functional strength improved from 28 in 2019 to 60 in 2025, indicating efforts to address backlog. Year-wise functional strength has shown a steady increase, indicating stronger institutional capacity: This reflects significant augmentation of the adjudication infrastructure over the years

NCLT Capacity, IBC Case Delays & Recovery Performance

NCLT Functional Strength (Year-wise)

Year	President	Members	Total Functional Strength
2019	1	27	28
2020	0	45	45
2021	0	29	29
2022	1	41	42
2023	1	42	43
2024	1	53	54
2025	1	59	60

IBC Case Pendency is Out of 1101 resolved cases (2019–2025), a significant portion exceeded the statutory timeline of 330 days. & Cases taking more than 600 days rose from 11 in 2019-20 to 121 in 2024-25, showing persistent delays despite capacity enhancement. Insolvency Cases Taking >600 Days

Year	Total Resolutions	Cases >600 Days
2019-20	132	11
2020-21	119	30
2021-22	142	52
2022-23	186	89
2023-24	263	120
2024-25	259	121

Government’s Reply on IBC Cases Taking Over 600 Days

From 2019-20 to 2024-25, a total of 1101 cases reached the resolution stage. However, delays beyond 600 days have increased year-over-year: Total admitted claims is ₹9.72 lakh crore (approx.) & realizable value is ₹2.73 lakh crore (approx.). Recovery rate fluctuated between 22% and 36%, with the highest in 2022-23 (36%). So in 2024-25, recovery was 34% of admitted claims but significantly higher than liquidation value (230%). Time overruns in IBC processes are rising significantly, pointing to systemic congestion despite capacity additions. Recovery Rate under IBC table under Recovery Performance

Year	Admitted Claims (₹ Cr)	Realisable Value (₹ Cr)	Recovery %
2019-20	1,64,568	41,826	25%
2020-21	1,27,200	27,551	22%
2021-22	1,95,383	46,369	24%
2022-23	1,53,567	55,361	36%
2023-24	1,68,927	46,176	27%
2024-25	1,62,746	55,821	34%

Policy Observations & Operational Issues

Government’s Reply on IBC Recovery Rates (2019-20 to 2024-25) : Across six financial years, INR 2.73 lakh crore was realised by creditors through approved resolution plans. Year-wise recovery (as a percentage of admitted claims) generally falls between 22% to 36%.

Financial & Economic Impact : Moderate recovery rates vs. admitted claims, yet significantly higher than liquidation, confirming IBC’s value maximization objective. Time delays increase haircuts, reduce asset value, and strain creditors’ balance sheets

Persistent Systemic Constraints : Even with more members, NCLT timeframes remain stretched. Case complexity, litigation, and procedural delays continue to hamper efficiency. Large corporate insolvencies dominate admitted claims, affecting recovery percentages

Operational bottlenecks in NCLT resolution matter; despite increased member strength, resolution timelines remain stretched. Which creates financial impact like Recovery rates are modest compared to admitted claims, though better than liquidation scenarios. The data for 2019–2025 highlights a mixed picture NCLT capacity has improved significantly, but resolution delays continue to rise, and recovery rates remain moderate, though clearly superior to liquidation. Govt must take following Action Points to overcome this issue

Monitor NCLT capacity utilization and cash flow.
Advise clients on realistic recovery expectations under IBC.
Factor delays into insolvency strategy and financial planning.

In most years, realization exceeded liquidation value and often the fair value as well, highlighting the comparative benefit of resolution over liquidation. While the percentage recovery shows moderate performance, the absolute realisation remains substantial.

Tags: IBC Case Pendency

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