NCLT, NCLAT Should Have Basic Infrastructure, They are Government's Lifeline: Supreme Court

The Supreme Court on Monday expressed serious concern over the shortage of members, staff and basic infrastructure at the National Company Law Tribunal (NCLT), observing that the tribunal and its appellate body, the National Company Law Appellate Tribunal (NCLAT), have become a critical part of the government’s economic and financial framework.

A Bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice V Mohana remarked that the tribunals could not be expected to effectively deal with matters involving thousands of crores of rupees without adequate buildings, personnel and technological facilities.

“They are the government's lifeline now. All nationalised banks, banking sector, and all infrastructure projects are also matter of examination before these tribunals only,” the Bench observed.

Supreme Court was hearing Suo Motu case where proceedings originated in April this year when the Court took suo motu cognisance of delays in the approval of resolution plans pending before NCLT benches across the country.

Bar flags half-day sittings and staff shortage

During Monday's hearing, the NCLT Principal Bench Bar Association intervened in the proceedings and highlighted what it described as serious institutional deficiencies.

Senior Advocate Sanjiv Sen, appearing for the Association, submitted that the infrastructure at the NCLT was “in shambles”. He told the Bench that at least 18 NCLT benches were functioning with half-day sittings under the roster effective from August 24, owing to vacancies and retirement of members.

The Association also pointed out that the sanctioned strength of NCLT members had remained around 63 despite the substantial expansion of the tribunal's workload following the introduction of the IBC.

Sen further submitted that around 18 additional vacancies could arise over the next year because of impending retirements. He urged the Court to consider allowing members nearing retirement to continue for a limited period until their replacements are appointed. The Association also highlighted the shortage of permanent support personnel. According to the submissions, 246 staff members, including court masters, were working on a temporary basis.

The Bench questioned how the tribunal could effectively function without basic amenities. “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,” it observed.

It further noted that matters involving thousands of crores of rupees regularly come before the NCLT and that adequate institutional infrastructure was therefore essential.

Centre asked to assess facilities

Court has directed the NCLT Principal Bench Bar Association to collect details of infrastructure available at all regional benches and place the information before the Court in a consolidated form.

The Union government has been directed to file a status report on the basic amenities available at the Principal Bench and regional NCLT benches. It has also been asked to identify, in consultation with the NCLT President, the facilities that require urgent attention.

The matter has been listed for further consideration after two weeks.

How the suo motu case began

The issue came before the Supreme Court while a Bench of Justices JB Pardiwala and KV Viswanathan was hearing two appeals arising from a 2023 NCLAT order. During the hearing, the Court noticed that several applications seeking approval of resolution plans had remained pending before the NCLT for considerable periods.

It had then sought details from the NCLT Principal Bench regarding the number of pending applications, the period for which they had remained pending and the reasons for the delay. The Insolvency and Bankruptcy Board of India (IBBI) was also impleaded and directed to provide relevant data.

The information placed before the Court showed that 383 applications for approval of resolution plans were pending across NCLT benches, with some matters having remained pending for more than 700 days. The Court described the situation as “grim” and said that the issue required to be addressed on a “war footing”, failing which the purpose of the Insolvency and Bankruptcy Code (IBC) could be frustrated.

The matter was thereafter directed to be placed before the Chief Justice of India for appropriate allocation, eventually leading to the present proceedings concerning appointments, infrastructure and other institutional issues.  

Case Title: IN RE: APPOINTMENT OF JUDICIAL AND TECHNICAL MEMBERS AND INADEQUATE INFRASTRUCTURE IN NATIONAL COMPANY LAW TRIBUNAL (NCLT) AND ANCILLARY ISSUES Vs

Bench: CJI Kant, Justice Bagchi and Justice Mohana

Hearing Date: September 21, 2026