SC Directs NCLT, NCLAT Heads to Submit Proposal to Address Infrastructure, Operational Gaps

New Delhi, Oct 29 (KNN) The Supreme Court has directed the Presidents of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) to submit a comprehensive proposal identifying infrastructure requirements and measures to improve the tribunals' functioning.

A bench comprising Chief Justice of India (CJI) Surya Kant and Justices Joymalya Bagchi and V. Mohana said the tribunal heads were best placed to identify the requirements needed to strengthen their day-to-day operations.

The Court asked them to outline measures to address existing deficiencies and improve the tribunals' functioning.

Court Flags Delays in Insolvency Resolution

The matter is being examined after the Supreme Court took suo motu cognizance on April 29, 2026, of delays in approval of resolution plans pending before various NCLT benches. It had observed that the Insolvency and Bankruptcy Code's (IBC) objective of time-bound resolution was ‘impossible to achieve’ under prevailing circumstances.

During the hearing, the Attorney General R. Venkataramani proposed sharing the Centre's status report with the NCLT President and holding a joint meeting with the government and the Bar to assess requirements.

He also suggested classifying the measures into short-, medium- and long-term priorities so that urgent deficiencies could be addressed first.

Bench Raises Concerns Over Tribunal Functioning

Submissions before the Court highlighted serious infrastructure gaps, shortage of members and limited capacity to hear cases. It was also pointed out that certain matters, including those involving personal guarantors, could remain low on cause lists due to these constraints.

Chief Justice Surya Kant remarked that the system had been completely hijacked by the Ministry of Corporate Affairs and stressed the need for both immediate and long-term solutions.

Earlier Directions on Infrastructure

On September 21, the Supreme Court had directed the Centre to submit a status report on basic amenities at the NCLT Principal and regional benches and identify urgent requirements in consultation with the tribunal's President.

It had also asked the NCLT Principal Bench Bar Association to compile details of available infrastructure and facilities across the benches and place them before the Court.

(KNN Bureau)