Supreme Court Directs Centre to Fix NCLT Infrastructure, Member Gaps

The Supreme Court on Tuesday flagged critical gaps in infrastructure and personnel at National Company Law Tribunal (NCLT) benches, issuing directions to the Centre to address the mounting challenges facing the quasi-judicial body.

In its order, the court directed the government to file a detailed status report documenting the current state of amenities at various NCLT benches and pinpointing facilities that require immediate remedial action. The court asked that this assessment be conducted in consultation with the NCLT president to ensure a comprehensive evaluation of ground-level requirements.

The apex court's intervention comes amid growing concerns about the operational efficiency of NCLT benches, which handle matters related to corporate insolvency, mergers and acquisitions, and company law disputes. The tribunal has faced recurring complaints about inadequate physical infrastructure and insufficient member strength, hampering its ability to dispose cases within stipulated timeframes.

The Supreme Court's directive places the onus on the Centre to prioritise the strengthening of institutional capacity at NCLT benches. The status report is expected to serve as a blueprint for resource allocation and administrative reforms needed to enhance the tribunal's functioning across its various locations.