Lok Sabha Question No. 222 (STARRED), answered on 2025-03-17
Subject: Pending Cases under Companies Act in NCLT
Ministry: CORPORATE AFFAIRS
Asked by: Shri Manickam Tagore B, Shri Vijayakumar Alias Vijay Vasanth

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

STARRED QUESTION NO. 222

ANSWERED ON MONDAY, THE 17 TH  MARCH, 2025/ [PHALGUNA 26, 1946 (SAKA)]

## PENDING CASES UNDER COMPANIES ACT IN NCLT QUESTION

*222.  SHRI MANICKAM TAGORE B:

## SHRI VIJAYAKUMAR ALIAS VIAJY VASANTH:

Will the Minister of CORPORATE AFFAIRS कॉरपोरेट कार्य मंत्री be pleased to state:

- (a) the current backlog of cases pending under the Companies Act in  the  National  Company  Law  Tribunal  (NCLT)  and  the  reasons contributing to the backlog;
- (b) the  number  of  cases  related  to  insolvency  and  bankruptcy under the Insolvency and Bankruptcy Code (IBC) currently pending in the NCLT  and  the  steps  taken/being  taken  to  expedite  their resolution;
- (c) whether the Government has taken any measures to reduce the backlog  of  pending  cases  in  the  NCLT,  especially  with  regard  to corporate affairs and insolvency matters and if so, the outcome of these measures; and
- (d) the impact of the backlog on India's ranking in the ease of doing business index and its overall investment climate?

## ANSWER

THE MINISTER FOR FINANCE AND (SMT NIRMALA SITHARAMAN) CORPORATE AFFAIRS

वित्त एिं कॉरपोरेट कार्य मंत्री

( श्रीमती निमयला सीतारमण)

(a) to (d):- A statement is laid on the Table of the House.

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STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (d) OF THE STARRED QUESTION NO. 222 FOR ANSWER IN LOK SABHA ON 17.03.2025. (a)  to  (c)  As  per  information  provided by National Company Law Tribunal (NCLT),  the  number  of  cases  pending  under  the  Companies  Act  and Insolvency Bankruptcy Code, 2016 (IBC), as on 31.12.2024 are as under:

| Companies Act (CA)   | Insolvency Bankruptcy Code, 2016 (IBC)   | Total   |
|----------------------|------------------------------------------|---------|
| 8,133                | 12,351                                   | 20,484  |

National Company Law Tribunal (NCLT) is a quasi-judicial body. There are several reasons for the pendency of cases in NCLT which, inter-alia depends on circumstances and complexity of each case, nature of evidence, number of Interlocutory Applications (IA), stay by the higher courts in many cases, cooperation of stake holders and adjournments. To facilitate expeditious disposal, Government is taking necessary steps on an ongoing basis, which include implementation of e-court and hybrid court project, regular colloquiums for capacity building of members, provisions of infrastructure, filling up of vacancies, etc. (d) The Government has taken a number of initiatives  under Ease of Doing Business [EoDB] which are aimed at creating a conducive business environment. As a part of the above, Doing Business Report (DBR) 2019 was published  by  the  World  Bank.  India's  rank  in  resolving  insolvency  in  the above report was 52. The introduction of the Insolvency and Bankruptcy Code (IBC) in 2016 significantly benefited India, improving its rank by 56 places to reach 52 in 2019 from 108 in 2018.The World Bank discontinued publishing its Doing Business Report (DBR) in September 2021, with the last report released in October 2019. The B-Ready (Business Ready) project is a new initiative by the World Bank to  replace the earlier Doing Business rankings. The B-Ready assessment focuses  on  various  stages  of  a  business  lifecycle,  including  starting  a business, dealing with construction permits and resolving insolvency. The first B-Ready report was launched on October 3rd, 2024, and India is covered  in  the  third  phase  of  the  project.  The  report  covering  India  is expected in September 2026. The IBC 2016 has been instrumental in maintaining a minimal backlog of insolvency  cases,  thereby  improving  India's  ease  of  doing  business  and enhancing its overall investment climate.

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