Supreme Court Expresses Concern Over NCLT Delays in Resolution Plan Approvals

The Supreme Court has flagged significant delays in the approval of resolution plans by the NCLT, terming the situation "very unfortunate."

The bench noted that such delays frustrate the Insolvency and Bankruptcy Code’s objective of time-bound resolution.

The Court was hearing a case where a plan remained pending for nearly two years despite approval by the Committee of Creditors.

Consequently, the Court directed the NCLT Principal Bench and the Insolvency and Bankruptcy Board of India to submit a nationwide report detailing the number of pending applications, the duration of pendency, and the specific reasons for these adjudicatory delays.

[AVJ Heightss Apartment Owners Association v. IIFL Finance Ltd. & Anr.]