ICSI Urges Government to Set Up NCLT Bench in Pune to Address Rising Corporate Dispute Backlog

The Institute of Company Secretaries of India (ICSI), functioning as a statutory entity under the purview of the Ministry of Corporate Affairs, has formally approached the Union Finance and Corporate Affairs Minister seeking approval for the creation of a National Company Law Tribunal (NCLT) Bench in Pune, Maharashtra. This request stems from the urgent need to address the growing backlog of corporate disputes and insolvency matters affecting the nation's business ecosystem.

Maharashtra's Corporate Landscape and Current Tribunal Infrastructure

Maharashtra stands as India's economic powerhouse and financial hub, housing approximately 5.5 lakh registered corporate entities. Among these, Pune alone accounts for more than one lakh companies, reflecting its emergence as a significant commercial and industrial center. Despite this substantial corporate presence, the state currently operates with only a single NCLT Bench located in Mumbai, although the original blueprint envisioned two benches for the region.

The existing infrastructure faces mounting pressure as the volume of corporate disputes, insolvency proceedings, and company law matters continues to escalate on a daily basis. The concentration of such a large number of corporate entities coupled with a solitary tribunal bench has created an untenable situation affecting timely justice delivery.

Alarming Case Pendency Statistics

According to data presented in the Economic Survey released on January 29, 2026, the aggregate pendency before NCLT Benches throughout India has crossed the 30,600-case mark. This substantial backlog poses serious challenges to the efficacy of the corporate adjudication framework, particularly concerning the time-sensitive nature of insolvency resolution proceedings mandated under existing legislation.

The situation becomes more concerning when examining cases at various stages of proceedings. Approximately 7,000 matters remain stuck at the preliminary admission stage itself, indicating systemic bottlenecks that prevent cases from even entering the substantive hearing phase. With only 15 operational benches catering to roughly 19 lakh corporate entities nationwide, the infrastructure gap becomes evident.

Timeline Deviations Under Insolvency and Bankruptcy Code

The Insolvency and Bankruptcy Code prescribes a structured timeline of 330 days for completing the Corporate Insolvency Resolution Process (CIRP). However, ground realities paint a markedly different picture. Empirical evidence reveals that the average duration for resolving insolvency cases has extended to 713 days, representing more than double the statutory prescription. The situation deteriorated further in 2025, with average resolution periods stretching to approximately 853 days.

These significant timeline overruns undermine the fundamental objectives of the insolvency framework, which was designed to facilitate swift resolution and value maximization. The protracted timelines result in erosion of enterprise value, diminished recovery prospects for creditors, and delayed rehabilitation of distressed businesses.

Evolution of NCLT's Jurisdictional Mandate

Originally constituted under the Companies Act, 2013, the NCLT's mandate expanded significantly when it assumed insolvency jurisdiction in December 2016. This jurisdictional expansion transformed the tribunal into a multifaceted forum handling diverse matters including company law disputes, merger and amalgamation applications, cases involving oppression and mismanagement, liquidation proceedings, avoidance litigation, and matters concerning personal guarantors.

However, this substantial increase in functional responsibilities has not been accompanied by proportionate augmentation of institutional capacity. The current infrastructure permits disposal of merely 500 to 600 insolvency matters annually, a figure grossly inadequate given the influx of new cases.

Macroeconomic Implications of Delayed Resolution

The consequences of prolonged insolvency proceedings extend far beyond individual cases, creating ripple effects across the broader economy. ICSI estimates indicate that capital worth ₹10 to 15 lakh crore remains locked within pending cases, representing a massive amount of productive resources lying dormant.