{"id":30632,"date":"2025-12-10T17:17:48","date_gmt":"2025-12-10T11:47:48","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=30632"},"modified":"2025-12-10T18:59:05","modified_gmt":"2025-12-10T13:29:05","slug":"nclt-membership-ibc-case-pendency-recovery-trend","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/nclt-membership-ibc-case-pendency-recovery-trend\/","title":{"rendered":"MCA : NCLT Membership, IBC Case Pendency &#038; Recovery Trend"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dcd56c50116\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dcd56c50116\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/nclt-membership-ibc-case-pendency-recovery-trend\/#Overview_on_NCLT_Membership_Case_Pendency_IBC_Recovery_Trends_2019%E2%80%932025\" title=\"Overview on NCLT Membership, Case Pendency &amp; IBC Recovery Trends (2019\u20132025)\">Overview on NCLT Membership, Case Pendency &amp; IBC Recovery Trends (2019\u20132025)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/nclt-membership-ibc-case-pendency-recovery-trend\/#NCLT_Capacity_IBC_Case_Delays_Recovery_Performance\" title=\"NCLT Capacity, IBC Case Delays &amp; Recovery Performance\">NCLT Capacity, IBC Case Delays &amp; Recovery Performance<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/nclt-membership-ibc-case-pendency-recovery-trend\/#Governments_Reply_on_IBC_Cases_Taking_Over_600_Days\" title=\"Government\u2019s Reply on IBC Cases Taking Over 600 Days\">Government\u2019s Reply on IBC Cases Taking Over 600 Days<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/nclt-membership-ibc-case-pendency-recovery-trend\/#Policy_Observations_Operational_Issues\" title=\"Policy Observations &amp; Operational Issues\">Policy Observations &amp; Operational Issues<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-23532\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/10\/Amends-in-IBC-Regulations-in-Liquidation-process.jpeg\" alt=\"Amends in IBC Regulations in Liquidation process\" width=\"847\" height=\"485\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Overview_on_NCLT_Membership_Case_Pendency_IBC_Recovery_Trends_2019%E2%80%932025\"><\/span><span style=\"color: #000080;\"><strong>Overview on NCLT Membership, Case Pendency &amp; IBC Recovery Trends (2019\u20132025)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Lok Sabha Questions by the Hon\u2019ble MP Shri Tanuj Punia. sought year-wise details from 2019 to 2025 on Sanctioned vs. Functional Members (Judicial &amp; Technical) in NCLT, the number of IBC cases exceeding 600 days for resolution &amp; the average recovery rate under the Insolvency and Bankruptcy Code (IBC) In percentage terms &amp; In absolute rupee value (amount realised vs. admitted claims)<\/p>\n<p><span style=\"color: #000080;\"><strong>Summarized Report NCLT Membership, Case Pendency &amp; IBC Recovery Trends (2019\u20132025)<\/strong><\/span><\/p>\n<p>The Ministry of Corporate Affairs\u00a0 replies on 08 December 2025 that the Govt&#8217;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\u2019s functional strength, case delays under IBC, and recovery performance. NCLT Capacity Sanctioned strength is 63 members (including the president). &amp; 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: <em>This reflects significant augmentation of the adjudication infrastructure over the years<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"NCLT_Capacity_IBC_Case_Delays_Recovery_Performance\"><\/span><a href=\"https:\/\/carajput.com\/archives\/nclt-membership-case-pendency-and-ibc-recovery-trends-2019-2025.pdf\"><span style=\"color: #000080;\"><strong>NCLT Capacity, IBC Case Delays &amp; Recovery Performance<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>NCLT\u00a0Functional Strength (Year-wise)<\/p>\n<table style=\"height: 537px;\" width=\"872\">\n<tbody>\n<tr>\n<td><strong>Year<\/strong><\/td>\n<td><strong>President<\/strong><\/td>\n<td><strong>Members<\/strong><\/td>\n<td><strong>Total Functional Strength<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>2019<\/strong><\/td>\n<td><strong>1<\/strong><\/td>\n<td><strong>27<\/strong><\/td>\n<td><strong>28<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>2020<\/strong><\/td>\n<td><strong>0<\/strong><\/td>\n<td><strong>45<\/strong><\/td>\n<td><strong>45<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>2021<\/strong><\/td>\n<td><strong>0<\/strong><\/td>\n<td><strong>29<\/strong><\/td>\n<td><strong>29<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>2022<\/strong><\/td>\n<td><strong>1<\/strong><\/td>\n<td><strong>41<\/strong><\/td>\n<td><strong>42<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>2023<\/strong><\/td>\n<td><strong>1<\/strong><\/td>\n<td><strong>42<\/strong><\/td>\n<td><strong>43<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>2024<\/strong><\/td>\n<td><strong>1<\/strong><\/td>\n<td><strong>53<\/strong><\/td>\n<td><strong>54<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>2025<\/strong><\/td>\n<td><strong>1<\/strong><\/td>\n<td><strong>59<\/strong><\/td>\n<td><strong>60<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>IBC Case Pendency is Out of 1101 resolved cases (2019\u20132025), a significant portion exceeded the statutory timeline of 330 days. &amp; 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 &gt;600 Days<\/p>\n<table style=\"height: 438px;\" width=\"825\">\n<tbody>\n<tr>\n<td>Year<\/td>\n<td>Total Resolutions<\/td>\n<td>Cases &gt;600 Days<\/td>\n<\/tr>\n<tr>\n<td>2019-20<\/td>\n<td>132<\/td>\n<td>11<\/td>\n<\/tr>\n<tr>\n<td>2020-21<\/td>\n<td>119<\/td>\n<td>30<\/td>\n<\/tr>\n<tr>\n<td>2021-22<\/td>\n<td>142<\/td>\n<td>52<\/td>\n<\/tr>\n<tr>\n<td>2022-23<\/td>\n<td>186<\/td>\n<td>89<\/td>\n<\/tr>\n<tr>\n<td>2023-24<\/td>\n<td>263<\/td>\n<td>120<\/td>\n<\/tr>\n<tr>\n<td>2024-25<\/td>\n<td>259<\/td>\n<td>121<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Governments_Reply_on_IBC_Cases_Taking_Over_600_Days\"><\/span><span style=\"color: #000080;\">Government\u2019s Reply on IBC Cases Taking Over 600 Days<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>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 \u20b99.72 lakh crore (approx.) &amp; realizable value is \u20b92.73 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<\/p>\n<table style=\"height: 444px;\" width=\"823\">\n<tbody>\n<tr>\n<td>Year<\/td>\n<td>Admitted Claims (\u20b9 Cr)<\/td>\n<td>Realisable Value (\u20b9 Cr)<\/td>\n<td>Recovery %<\/td>\n<\/tr>\n<tr>\n<td>2019-20<\/td>\n<td>1,64,568<\/td>\n<td>41,826<\/td>\n<td>25%<\/td>\n<\/tr>\n<tr>\n<td>2020-21<\/td>\n<td>1,27,200<\/td>\n<td>27,551<\/td>\n<td>22%<\/td>\n<\/tr>\n<tr>\n<td>2021-22<\/td>\n<td>1,95,383<\/td>\n<td>46,369<\/td>\n<td>24%<\/td>\n<\/tr>\n<tr>\n<td>2022-23<\/td>\n<td>1,53,567<\/td>\n<td>55,361<\/td>\n<td>36%<\/td>\n<\/tr>\n<tr>\n<td>2023-24<\/td>\n<td>1,68,927<\/td>\n<td>46,176<\/td>\n<td>27%<\/td>\n<\/tr>\n<tr>\n<td>2024-25<\/td>\n<td>1,62,746<\/td>\n<td>55,821<\/td>\n<td>34%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3 data-start=\"3538\" data-end=\"3588\"><span class=\"ez-toc-section\" id=\"Policy_Observations_Operational_Issues\"><\/span><span style=\"color: #000080;\"><strong data-start=\"3540\" data-end=\"3588\">Policy Observations &amp; Operational Issues<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Government\u2019s 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%.<\/p>\n<p data-start=\"3869\" data-end=\"3904\">Financial &amp; Economic Impact : Moderate recovery rates<span style=\"font-size: 16px;\"> vs. admitted claims,\u00a0<\/span><span style=\"font-size: 16px;\">yet significantly <\/span>higher than liquidation<span style=\"font-size: 16px;\">, confirming IBC\u2019s value maximization objective.\u00a0<\/span><span style=\"font-size: 16px;\">Time delays increase haircuts, reduce asset value, and strain creditors\u2019 balance sheets<\/span><\/p>\n<p data-start=\"3869\" data-end=\"3904\">Persistent Systemic Constraints : <span style=\"font-size: 16px;\">Even with more members, <\/span>NCLT timeframes remain stretched. <span style=\"font-size: 16px;\">Case complexity, litigation, and procedural delays continue to hamper efficiency. <\/span><span style=\"font-size: 16px;\">Large corporate insolvencies dominate admitted claims, affecting recovery percentages<\/span><\/p>\n<p>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.<i> <\/i>The data for 2019\u20132025 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.\u00a0Govt must take following Action Points to overcome this issue<\/p>\n<ul>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/blog\/distinction-in-treatment-of-fcs-and-ocs-under-ibc\/\">Monitor NCLT capacity utilization<\/a> and cash flow.<\/li>\n<li>Advise clients on realistic recovery expectations under IBC.<\/li>\n<li>Factor delays into insolvency strategy and financial planning.<\/li>\n<\/ul>\n<p>In most years, realization exceeded liquidation value and often the fair value as well, highlighting the comparative benefit of resolution over liquidation. <em>While the percentage recovery shows moderate performance, the absolute realisation remains substantial.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Overview on NCLT Membership, Case Pendency &amp; IBC Recovery Trends (2019\u20132025) Lok Sabha Questions by the Hon\u2019ble MP Shri Tanuj Punia. sought year-wise details from 2019 to 2025 on Sanctioned vs. Functional Members (Judicial &amp; Technical) in NCLT, the number of IBC cases exceeding 600 days for resolution &amp; the average recovery rate under the &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8789],"tags":[10381],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30632"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=30632"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30632\/revisions"}],"predecessor-version":[{"id":30636,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30632\/revisions\/30636"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=30632"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=30632"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=30632"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}