The Insolvency and Bankruptcy Board of India (IBBI) is likely to push for dedicated National Company Law Tribunal (NCLT) benches to handle insolvency cases in the real estate sector once the Ministry of Corporate Affairs (MCA) approves additional courts, sources aware of the development told TNIE.
The IBBI has been urging the Ministry over the past two years to expand the NCLT's capacity. According to the insolvency regulator, more than 100 courts are required across the country to effectively tackle the mounting backlog of cases.
"We have been asking the Ministry to set up additional courts across cities. Even in Budget 2024, plans were announced to establish additional NCLT benches. However, nearly two years later, there has been no implementation. Once we have additional courts, we can plan dedicated benches for real estate insolvency cases," a source said.
According to the latest IBBI data, the NCLT's 16 benches currently have a sanctioned strength of 63 members, including the President. At present, 28 courts are functioning across 15 cities.
While the government has approved the establishment of 31 new courts, these are yet to become operational. Separately, the IBBI has sought approval for 50 additional courts since 2022.
"The NCLT normally hears matters through two-member benches consisting of a judicial and a technical member. Given the shortage of members, the tribunal's capacity has been under strain, leading to delays in insolvency proceedings. Since all corporate insolvency cases originate before the NCLT, increasing bench strength or creating specialised benches could significantly improve the speed of resolution, particularly in complex sectors such as real estate," said Prateek Kumar, Partner, Dispute Resolution, at Khaitan & Co.
India's real estate sector accounts for the second-highest number of insolvency admissions, representing 22% of all cases admitted under the Insolvency and Bankruptcy Code (IBC). The sector faces unique challenges, including financial stress, cost overruns and delays in project completion.
According to the IBBI's report on real estate insolvency released in April 2026, more than 550 real estate insolvency cases are currently underway, impacting nearly 2.5 lakh individuals.
The IBBI has also proposed specialised NCLT benches for sectors such as MSMEs, infrastructure and real estate, staffed with members possessing relevant domain expertise. In addition, it has sought fast-track benches for specific categories of cases to ensure timely disposal of insolvency-related applications.
