Page Contents
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 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 |
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% |
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
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.
Key Provisions, Jurisdiction, Mediation under Commercial Courts Act 2015 Introduction The Commercial Courts Act, 2015 marked a significant reform in… Read More
GST Council Proposes Major Measures to Simplify Compliance The GST Council has recommended a series of reforms aimed at reducing… Read More
XBRL Applicability under the Companies Act, 2013 – Detailed Explanation XBRL (eXtensible Business Reporting Language) is a globally accepted electronic… Read More
MSME New Feature Alert: PAN to MSME Search in Bridze MSME Compliance Suite The PAN to MSME Search feature in… Read More
key recommendations of the 57th GST Council Meeting held on 8 October 2026. The 57th GST Council recommendations indicate a… Read More
GST on Charitable and Religious Trusts: Exemptions, Rulings and Compliance Explained Do charitable trusts pay GST? The short answer Yes.… Read More