The Supreme Court has expressed its displeasure over the state of national company law tribunals (NCLT) across India, citing gaps in infrastructure, manpower, and supporting staff that have led to delays in approvals for resolution plans.
A bench of justices JB Pardiwala and KV Viswanathan termed the situation 'grim and dismal' after reviewing a report presented by the NCLT principal bench in New Delhi.
The report showed 383 applications pending across the country, awaiting approval of resolution plans, with delays ranging from 48 days to 738 days.
The court directed the matter to be placed before Chief Justice of India Surya Kant for assignment to an appropriate bench, warning that the purpose of the Insolvency and Bankruptcy Code (IBC) would be frustrated if issues are not addressed on a war footing.
The bench noted a serious manpower crunch across NCLT benches, with a working strength of only 54 members (28 judicial and 26 technical) out of a sanctioned strength of 63.
The court also took exception to the NCLT registrar being appointed on a contractual basis, calling it 'something unheard of.'
The report highlighted major infrastructural constraints that force the tribunal to sit for half a day, with staff assisting the benches appointed on contractual basis and their salaries and allowances not regularly paid.
The court remarked, 'Do you expect an adjudicatory body handling cases of this nature to decide matters in such conditions?'
