The Court’s decision to take suo motu cognisance builds on concerns it had already flagged earlier this month while hearing a dispute arising out of insolvency proceedings against AVJ Developers.
On April 16, the Apex Court had expressed strong disapproval over delays by the National Company Law Tribunal (NCLT) in clearing resolution plans under the Insolvency and Bankruptcy Code (IBC).
Calling the situation “very unfortunate,” the Court had noted that in several cases, approval applications had remained pending for nearly two years or more after being cleared by the Committee of Creditors (CoC), the body of lenders that votes on a revival plan.
The Court had then directed the NCLT’s Principal Bench in New Delhi to furnish comprehensive nationwide data, including the number of pending resolution plan approval applications, the duration of such pendency, and the reasons for delay.
It had also impleaded the Insolvency and Bankruptcy Board of India (IBBI) to assist with country-wide statistics.
