THE ROLE OF NCLT AND NCLAT IN SHAPING INSOLVENCY JURISPRUDENCE IN INDIA

AUTHOR – SHIVANGI SINGH, STUDENT AT BENNETT UNIVERSITY

BEST CITATION – SHIVANGI SINGH, THE ROLE OF NCLT AND NCLAT IN SHAPING INSOLVENCY JURISPRUDENCE IN INDIA, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (1) OF 2025, PG. 12-26, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

The Insolvency and Bankruptcy Code (IBC), 2016, transformed India’s insolvency landscape, providing a much-needed framework for resolving financial distress in a time-bound and structured manner. At the heart of this transformation lie the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT), which have played a critical role in interpreting and applying the provisions of the IBC. Through landmark decisions such as Innoventive Industries Ltd. vs. ICICI Bank Ltd., Essar Steel India Ltd. vs. Satish Kumar Gupta, and Swiss Ribbons Pvt. Ltd. vs. Union of India, these tribunals have not only resolved disputes but also shaped the broader jurisprudence of insolvency law in India.

This paper delves into these pivotal rulings to uncover how they have addressed key challenges in the IBC, such as protecting creditor rights, balancing interests among stakeholders, ensuring fairness in resolution plans, and maintaining strict adherence to timelines. It highlights emerging themes, including the evolving role of the Committee of Creditors (CoC) and the tribunals’ balancing act between commercial decision-making and judicial oversight. While the NCLT and NCLAT have made significant contributions, they are not without criticism. Issues like procedural delays and accusations of overreach highlight areas needing reform. Despite these challenges, the tribunals have undeniably strengthened the IBC and provided a foundation for more predictable insolvency proceedings. This paper explores their impact, assesses their effectiveness, and reflects on what lies ahead for India’s insolvency ecosystem.