New Delhi, Mar 3 (KNN) The Union government has assigned benches to 21 of the 24 newly appointed judicial and technical members of the National Company Law Tribunal (NCLT), following demands from the NCLT Bar Association and a Supreme Court directive to expedite the process.
In January 2025, the Centre appointed 24 new members to 11 NCLT benches across the country to fill existing vacancies. India has a total of 16 NCLT benches with a sanctioned strength of 63 members.
The delay in assigning benches was attributed to the induction programme, which aimed to familiarize the new members with tribunal operations.
According to an official notification from the Ministry of Corporate Affairs (MCA), issued on Friday, the new members have been instructed to assume their roles “at the earliest.”
The NCLT Bar Association had previously raised concerns over the delay, arguing that it was slowing down insolvency proceedings.
The Supreme Court, in a November 2024 ruling, had also expressed disappointment over the tribunal’s large vacancies, citing them as obstacles to the insolvency resolution process.
Former Chief Justice of India DY Chandrachud had emphasized that the lack of members and inadequate infrastructure were major impediments to the tribunal’s efficiency.
Industry experts highlight that the shortage of members directly impacts dispute resolution. “Existing members are overworked, with some benches handling over 150 matters per day,” said Abhishek Swaroop, partner at Saraf and Partners.
Data from the Insolvency and Bankruptcy Board of India (IBBI) shows that the average time for a corporate insolvency resolution process (CIRP) has risen to 716 days in 2023-24, far exceeding the 330-day limit mandated by the Insolvency and Bankruptcy Code (IBC).
The government is reportedly considering doubling NCLT’s strength to 115 members and increasing the number of benches to 31 to enhance efficiency, but no final decision has been taken yet.
(KNN Bureau)
