The Insolvency and Bankruptcy Code (IBC) framework in 2025 was marked by mounting stress on timelines and capacity, with resolution processes stretching far beyond the statutory limits, despite efforts by the National Company Law Tribunal (NCLT) to cope with its limited capacity.
Senior advocates and legal industry experts have voiced concerns over systemic delays, pointing to nearly 10,000 cases stuck at the admission stage, with recovery worth more than Rs 10 lakh crore locked in distressed assets, and to almost 24 of the 30 NCLT courts operating on half-day schedules. Delays stem not only from limited capacity but also from repeated adjournments, contested defaults, and excessive litigation under Section 60(5) of IBC. When asked about the overall functioning of NCLT, Senior Advocate Ramji Srinivasan told PTI: “There is a sense of disappointment.”