India’s debt recovery system continues to face heavy pressure, with the Union government informing the Rajya Sabha that 178,172 cases remain pending before debt recovery tribunals (DRTs) as of 14 November 2025, alongside 66,876 pending Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act applications. In a written reply, the government noted that while recoveries through the DRT framework have improved over the years, the volume of unresolved cases remains substantial, underscoring ongoing structural challenges in the debt enforcement ecosystem.
In a written reply, Harsh Malhotra, ministry of corporate affairs (MCA) also shared updated figures on cases before the national company law tribunal (NCLT), which handles corporate insolvency matters under the Insolvency and Bankruptcy Code (IBC). Up to 30 September 2025, a total of 53,727 cases had been filed before the NCLT, of which 46,725 had been disposed, while 7,002 remained pending. This caseload includes matters transferred from the erstwhile BIFR (board for industrial and financial reconstruction) following its dissolution in 2016.
Dr Sasmit Patra, a member of Parliament (MP), has asked about the total number of cases filed, disposed off and pending as on 14 November 2025 in NCLT, DRTs, SARFAESI (via respective recovery tribunals) and BIFR. Dr Patra also asked about the average cost per case disposed in each of these forums and the total amount recovered through each forum.
Mr Malhotra, the minister, says, in terms of recoveries, DRTs realised ₹7,669.16 crore in FY22–23, which increased to ₹10,090.71 crore in FY23–24, before decreasing to ₹9,332.18 crore in FY24–25. While the year-on-year (y-o-y) fluctuations show resilience in the system, the high pendency puts pressure on overall enforcement efficiency.
The government also provided performance data on insolvency resolutions under the IBC. In FY22–23, the NCLT approved 186 resolutions with realisations of ₹55,361 crore, amounting to 36% of admitted claims. In FY23–24, 263 resolutions yielded ₹46,176 crore, or 27% of claims. The upward trend continued in FY24–25, when 259 completed resolutions brought in ₹55,821 crore, representing 34% of admitted claims and significantly exceeding liquidation values.
According to the minister, budget allocation and utilisation figures for both institutions indicate a rising resource allocation over the past three financial years, reflecting the growing demands placed on adjudication infrastructure. For NCLT, allocations rose from ₹86.80 crore in FY22–23 to ₹135.87 crore in FY24–25, with utilisation ranging between ₹86.27 crore and ₹122.59 crore. For DRTs, the government earmarked significantly higher sums, rising from ₹155.72 crore in FY22–23 to ₹212.07 crore in FY24–25, with utilisation figures showing near-full spending each year. The ministry clarified that determining average cost per case is not feasible because disposal timelines and procedural complexity vary widely across different types of matters.
Responding to a question on whether NCLT is considered a 'benchmark of excellence', Mr Malhotra, the minister says Ministry did not attach any qualitative label but stated that the tribunal performs its statutory role based on established rules and procedures. The juxtaposition of rising DRT pendency, steady NCLT disposals and substantial IBC realisations highlights the differing levels of strain across India’s financial adjudication mechanisms.
While NCLT continues to deliver consistent resolutions with meaningful recoveries, the DRT system remains burdened by a growing backlog, prompting calls for further strengthening of tribunal capacity, staffing and digital processes to expedite debt enforcement, he added.
