ICSI Seeks New NCLT Bench at Patna to Tackle Pendency and Support Corporate Growth

The Institute of Company Secretaries of India (ICSI), a statutory body constituted under an Act of Parliament and functioning under the Ministry of Corporate Affairs, has formally requested the Union Minister of Finance and Corporate Affairs to set up a separate National Company Law Tribunal (NCLT) Bench at Patna, Bihar.

This representation stems from mounting concerns over the heavy backlog of matters at existing NCLT Benches, the widening gap between statutory timelines and actual resolution periods under the Insolvency and Bankruptcy Code, 2016, and the increasing hardship faced by corporates and other stakeholders from Bihar that currently fall under the jurisdiction of the NCLT Bench at Kolkata.

Context: NCLT as a Core Pillar of the Corporate Justice System

The modern corporate regulatory and insolvency ecosystem in India rests significantly on the functioning of quasi-judicial bodies such as NCLT and NCLAT. These specialized forums:

  • Adjudicate matters under the Companies Act 2013
  • Oversee proceedings under the Insolvency and Bankruptcy Code, 2016
  • Handle cases involving mergers, demergers, and corporate restructuring
  • Address issues of oppression and mismanagement
  • Supervise corporate winding-up and liquidation processes
  • Deal with avoidance transactions and personal guarantor matters

By providing focused, expert adjudication on corporate and insolvency disputes, NCLT and NCLAT play a crucial role in decongesting regular courts, promoting certainty in commercial transactions, enhancing investor confidence, and reinforcing overall corporate governance standards.

Presently, there are 15 NCLT benches functioning across India. Earlier budget announcements have already signalled the Union Government’s intention to expand this network of benches to meet the needs of a rapidly growing and geographically dispersed corporate base. ICSI’s latest representation fits squarely within this broader policy direction.

Escalating Pendency Before NCLT Benches

According to the Economic Survey released on 29 January 2026, the total number of pending matters before NCLT benches across the country has climbed to approximately 30,600. This expanding docket is not just a quantitative concern; it has direct implications for the policy objectives underpinning the corporate regulatory and insolvency framework.

The Insolvency and Bankruptcy Code, 2016 was crafted around the principle of strict timelines and expedited resolution, with the goal of preserving enterprise value, freeing up locked capital, and improving credit discipline. However, the current level of pendency has significantly diluted these objectives.

Important: The effectiveness of Insolvency and Bankruptcy Code, 2016 is heavily dependent on timely adjudication. Rising pendency at NCLT strikes at the very foundation of this time-bound regime.

Time Overruns in CIRP: Gap Between Law and Practice

Under Insolvency and Bankruptcy Code, 2016, the Corporate Insolvency Resolution Process (CIRP) is required to be completed within a maximum of 330 days. This statutory outer limit is intended to ensure swift decision-making, preserve business value, and restore productive assets to the economy.

However, empirical evidence, as highlighted in the representation, paints a starkly different picture:

  • The average time taken for resolution has been around 713 days
  • In the year 2025, this average reportedly increased further to about 853 days
  • Nearly 7,000 cases remain held up at the admission stage itself
  • Existing institutional capacity allows disposal of only about 500–600 insolvency cases per year

This widening divergence between statutory timelines and actual disposal periods undermines the commercial logic of the insolvency framework.