The Paradox of Progress Amidst Paralysis
The Economic Survey of India 2025-26 paints a stark picture of India’s insolvency regime, revealing a deepening paradox: while policy reforms have enhanced the effectiveness and outcomes of the Insolvency and Bankruptcy Code (IBC), the very institutions tasked with its implementation are buckling under severe capacity constraints. At current disposal rates, the nation’s National Company Law Tribunals (NCLTs) are projected to require a decade to clear the existing backlog of over 30,600 cases. This systemic gridlock directly threatens to negate the legislative gains of the IBC, projecting significant economic drag and eroding investor confidence. The operationalization of the IBC…