The Supreme Court on Monday expressed concern over vacancies and inadequate infrastructure at the National Company Law Tribunal (NCLT), observing that the tribunal and the National Company Law Appellate Tribunal (NCLAT) have assumed a critical role in the functioning of the economy.
A Bench headed by Chief Justice of India Surya Kant and comprising Justice Joymalya Bagchi and Justice V Mohana was hearing a suo motu matter concerning the appointment of judicial and technical members and infrastructure at NCLT benches.
During the hearing, the Court stressed that tribunals handling high-value commercial disputes must be equipped with adequate buildings, personnel and technological facilities.
“They are the government’s lifeline now,” the Bench observed, pointing out that disputes involving nationalised banks, the banking sector and major infrastructure projects frequently come before these tribunals.
The NCLT Principal Bench Bar Association, which intervened in the proceedings, highlighted vacancies among members, inadequate physical and technological infrastructure and the absence of permanent support staff.
Senior Advocate Sanjiv Sen, appearing for the Association, told the Court that the situation at the tribunal was “in shambles”.
He said all benches at the principal bench were currently being compelled to hold only half-day sittings because of the shortage of members.
Sen said the NCLT’s sanctioned strength continued to stand at 63 despite the expansion of its jurisdiction following the enactment of the Insolvency and Bankruptcy Code (IBC). He also warned that around 18 additional vacancies could arise over the next year as members retire.
The Association urged the Court to permit members nearing retirement to continue in office for a limited period until their replacements are appointed.
The Bench questioned how the tribunal could effectively function without basic facilities.
“How an institution will function unless you provide the basic amenities? You don’t have building, you don’t have staff, you don’t have judgment writers, you don’t have proper, adequate technological inclusion,” the Court remarked.
Sen also informed the Court that 246 staff members, including court masters, were working on a temporary basis.
The Supreme Court directed the NCLT Principal Bench Bar Association to gather details of the infrastructure available at all regional NCLT benches and submit the information in a tabulated format.
The Union government was asked to file a status report setting out the basic amenities available at the principal and regional benches. It was also directed to consult the NCLT President and identify the facilities that require urgent attention.
The matter has been posted for further consideration after two weeks.
