The Supreme Court on Monday expressed concern over inadequate infrastructure and vacancies at benches of the National Company Law Tribunal (NCLT), observing that the NCLT and National Company Law Appellate Tribunal (NCLAT) are now the government’s “lifeline”.
A Bench comprising Chief Justice of India Surya Kant and Justice Joymalya Bagchi and Justice V Mohana said tribunals dealing with disputes involving thousands of crores could not function effectively without basic amenities, adequate staff and technological support.
Emphasizing their economic importance, the Supreme Court called the tribunals a “lifeline” for the government, pointing out that critical banking and infrastructure disputes are handled exclusively by them.
The Bench was hearing a suo motu case concerning the appointment of judicial and technical members and inadequate infrastructure at NCLT benches.
The NCLT Principal Bench Bar Association, which intervened in the proceedings, highlighted vacancies, inadequate physical and technological infrastructure and shortage of permanent support staff.
The Association informed the Court that at least 18 NCLT benches were holding only half-day sittings under the roster effective from August 24 due to vacancies and retirement of members. It also pointed out that the sanctioned strength of the NCLT remained at 63 despite the expansion of its jurisdiction following the enactment of the Insolvency and Bankruptcy Code (IBC).
Senior Advocate Sanjiv Sen, appearing for the Association, said the infrastructure was “in shambles” and that all benches at the principal bench were being forced to sit for only half a day.
Sen alerted the court that shortage of members has crippled operations nationwide, reducing all Principal Bench sittings to half-days and leaving 18 more vacancies expected due to retirements over the next year.
The Association urged the Court to consider allowing members nearing retirement to continue until vacancies are filled.
The Court questioned how the tribunal could function without basic facilities.
The Supreme Court emphasized the severe lack of infrastructure, asking how the tribunal could run without fundamental amenities like buildings, support staff, judgment writers, and adequate technology.
Sen further submitted that 246 staff members, including court masters, were working on a temporary basis.
The Court directed the NCLT Principal Bench Bar Association to collect and submit tabulated data on infrastructure available at all regional NCLT benches.
The Union government was directed to file a status report on basic amenities at the principal and regional benches and, in consultation with the NCLT President, identify facilities requiring urgent attention.
The matter will be heard again after two weeks.
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