Politics · India Bureau
India needs dedicated NCLT benches for insolvency cases, panel recommends
A Parliamentary committee has urged the establishment of specialized benches at the National Company Law Tribunal to handle insolvency matters separately, citing concerns that the tribunal's expanding workload in this area may compromise its other core responsibilities.
LSN India ·
The Department-Related Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice has recommended creating dedicated verticals or benches within the NCLT specifically for insolvency cases to improve disposal rates and efficiency. The suggestion was included in the committee's report on the functioning of the tribunal system, which was tabled in Parliament earlier this month.
The panel expressed concern that the tribunal's burgeoning insolvency jurisdiction—under the Insolvency and Bankruptcy Code—should not overshadow its equally vital responsibilities under the Companies Act, 2013. These include matters pertaining to mergers and amalgamations, corporate governance, and shareholder protection.
Currently, the NCLT operates through a principal bench and a New Delhi bench, with additional benches located in Allahabad, Ahmedabad, Bengaluru, Chandigarh, Chennai, Cuttack, Hyderabad, Indore, Kolkata, Kochi, and Mumbai. The committee's recommendations aim to ensure that the tribunal can balance its expanding caseload while maintaining the quality and timeliness of its adjudication across all jurisdictional areas.
The proposal reflects growing challenges in India's tribunal system as insolvency filings have increased substantially since the introduction of the Insolvency and Bankruptcy Code in 2016. Observers note that specialized benches could help reduce case backlogs and provide faster resolution for creditors and corporate entities seeking debt recovery or restructuring.