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Informist, Monday, Sept. 21, 2026

 

--SC: How will NCLT function if govt will not provide basic amenities 

--CONTEXT: SC suo motu case on delay by NCLT benches in approving IBC plans 

--SC seeks data on infrastructural facilities, amenities in NCLT benches 

--SC asks govt to identify amenities urgently required by NCLT benches 

 

NEW DELHI – The Supreme Court Monday questioned the government on the deplorable condition of infrastructural facilities at benches of the National Company Law Tribunal, questioning how could the institution function if the Centre does not provide basic amenities. The tribunals are dealing with cases involving more than INR 10 billion and banks and financial institutions are also involved in such disputes, it said.

 

The apex court asked the government to give a status report on the basic amenities provided so far to all benches of the tribunal. A bench led by Chief Justice of India Surya Kant directed the Centre to identify the amenities that were urgently required by the tribunal. 

 

The apex court also asked the lawyers' association of the principal bench of the tribunal to give data on infrastructural facilities at all the benches of the tribunal. The association had said that the infrastructure at the tribunals was in shambles and the issue regarding shortage of members on the benches required urgent intervention. There will be 18 more vacancies in the future on the tribunal benches, the association said, urging the apex court to allow existing members to continue holding the post after their retirement. The top court will hear the case next after two weeks. 

 

Observing that the situation was extremely "grim and dismal", the Supreme Court had in April taken suo motu cognisance of delays by various benches of national company law tribunals in approving resolution plans in the corporate insolvency resolution process of debt-ridden companies. "We take suo motu cognisance of the aforesaid (issue) in larger public interest. The issues need to be addressed on war footing. Otherwise, the purpose of enacting IBC (Insolvency and Bankruptcy Code, 2016) would stand frustrated," the apex court had said.

 

As per a report by the registrar of the tribunal's principal bench, there were 383 applications for resolution plans awaiting approval, the apex court had said. There was delay ranging from 48 days to 738 days in approving these plans, the court said, adding that in some cases it was up to four years. The reasons stated were lack of adequate infrastructure resulting in half day sittings due to interchange of combinations and large pendency of objections to resolution plans by various parties and stakeholders, the court had said. 

 

The top court had noted that there was a severe shortage of judicial members at the tribunals. The statutorily sanctioned strength across the country for tribunals was 63 members, but there were only 28 judicial members and 26 technical members posted across various benches, the court noted. There was an acute shortage of members, which was severely affecting functioning of the tribunals in a timebound manner, it noted.  End

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

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