Supreme Court criticizes inadequate infrastructure and vacancies in NCLT and NCLAT
Quick Look
The Supreme Court of India criticized the National Company Law Tribunal (NCLT) and its appellate and appellate NCLAT for operating from dilapidated buildings with leaking roofs, poor infrastructure, and severe vacancies in members and support staff, stating the situation is unacceptable given their role in handling Insolvency and Bankruptcy Code cases involving thousands of crores of rupees.
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Why It Matters
The National Company Law Tribunal (NCLT) and its appellate body NCLAT handle cases under the Insolvency and Bankruptcy Code, which involves significant financial matters including those of nationalized banks and infrastructure projects.
Supreme Court
NEW DELHI: Frowning upon grossly inadequate infrastructure and huge vacancies in National Company Law Tribunal (NCLT) and appellate NCLAT, Supreme Court Monday said the situation is unacceptable as these two tribunals have to daily deal with Insolvency and Bankruptcy Code matters involving thousands of crores of rupees. "They are govt's lifeline now. All nationalised banks, banking sector and all infrastructure projects are also matter of examination before these tribunals only," said a bench of CJI Surya Kant and Justices Joymalya Bagchi and V Mohana after senior advocate Sanjiv Sen on behalf of NCLT Bar Association pointed out that the tribunals' function from dilapidated buildings with poor infrastructure and a large vacancy in the posts of members was hampering adjudication.
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Sen said leaking roofs, persistent seepage, and the vacancies have severely restricted business hours in the NCLT building in Delhi with most of the benches sitting for half a day. In addition, a severe shortage of support staff is impeding adjudicatory functions of available members, he claimed. Addressing the concern to govt, CJI said, "How will an institution function unless you provide the basic amenities? You don't have buildings, you don't have staff, you don't have judgment writers, you don't have proper, adequate technological inclusion."
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What to Watch
AI outlook — possibilities, not facts
The government will be directed to improve infrastructure and fill vacancies in NCLT and NCLAT within a specified timeframe.
Likely · Within weeks
Open Questions
- What specific timeline did the Supreme Court set for the government to address the infrastructure and vacancy issues?
- How many vacancies currently exist in the NCLT and NCLAT benches?
- What is the estimated financial value of cases pending before these tribunals?
