Supreme Court ने NCLT में Resolution Plan अनुमोदन में देरी को suo motu रूप में मान्यता दी

<h2>Supreme Court Flags Systemic Delays in NCLT Resolution Plan Approvals</h2> <p>The <span class="key-term" data-definition="Supreme Court — the apex judicial body in India with the power of judicial review and suo motu jurisdiction (GS2: Polity)">Supreme Court</span> on <strong>April 29, 2026</strong> took suo motu cognizance of chronic delays in approving resolution plans by the <span class="key-term" data-definition="National Company Law Tribunal — specialised quasi‑judicial body that adjudicates corporate insolvency, mergers and other company law matters (GS2: Polity)">NCLT</span> Principal Bench, New Delhi. The Court also highlighted a critical shortage of judicial and technical members across all NCLT benches.</p> <h3>Key Developments</h3> <ul> <li>Pending approval applications: <strong>383</strong> cases, with pendency ranging from <strong>48 days to 738 days</strong>, and some extending up to <strong>four years</strong>.</li> <li>Staffing deficit: Out of a sanctioned strength of <strong>63</strong> members, only <strong>28 judicial</strong> and <strong>26 technical</strong> members are in post.</li> <li>The bench, comprising <strong>Justice J.B. Pardiwala</strong> and <strong>Justice K.V. Viswanathan</strong>, described the situation as “grim and dismal.”</li> <li>Frequent bench re‑constitution has led to half‑day sittings, further aggravating delays.</li> <li>Objections by stakeholders and limited interim relief have added to the backlog.</li> <li>The Court directed the issue to be placed before the <span class="key-term" data-definition="Chief Justice of India — the senior-most judge of the Supreme Court, responsible for administrative functions of the judiciary (GS2: Polity)">CJI</span> for urgent orders.</li> </ul> <h3>Important Facts</h3> <p>The matter arose from an insolvency dispute involving <span class="key-term" data-definition="IIFL Finance Limited — a non‑banking financial services company that extended a loan of ₹85 crore, later contested in insolvency proceedings (GS3: Economy)">IIFL Finance</span>. The claim was rejected in 2020, reinstated by the NCLT, and upheld by the National Company Law Appellate Tribunal in 2023. The <span class="key-term" data-definition="Insolvency and Bankruptcy Board of India — the regulator overseeing the implementation of the IBC and functioning of insolvency professionals (GS3: Economy)">IBBI</span> approved a resolution plan on <strong>July 4, 2024</strong>, filed before the NCLT on <strong>July 12, 2024</strong>, but it remains pending.</p> <p>An arbitral award dated <strong>July 3, 2024</strong> questioned the validity of IIFL’s loan documents, alleging fraud, thereby complicating the approval process.</p> <h3>UPSC Relevance</h3> <p>Understanding the functioning of the <span class="key-term" data-definition="Insolvency and Bankruptcy Code — legislation governing corporate insolvency and bankruptcy in India, aimed at time‑bound resolution (GS3: Economy)">IBC</span> and the ins