The Supreme Court has deferred its hearing on a self-initiated case addressing infrastructure shortages and delayed appointments at the National Company Law Tribunal, noting that the process of filling these vacancies is currently underway.
A three-judge bench of Chief Justice Surya Kant, Justice Joymalya Bagchi, and Justice V Mohana postponed the matter on Monday. During the proceedings, a counsel pointed out that the scope of the case extends beyond tribunal vacancies to include broader infrastructure deficiencies and the rate at which cases are resolved. Chief Justice Kant agreed with this assessment, stating that the concerns raised by a separate bench of the court were indeed serious.
Origins Of The Case
The court registered the self-initiated case, titled In Re: Appointment of Judicial and Technical Members and Inadequate Infrastructure in National Company Law Tribunal (NCLT) and Ancillary Issues, on May 19. This action followed an April 29 ruling in the case of AVJ Heightss Apartment Owners Association Vs IIFL Finance Ltd.
In that earlier ruling, a bench consisting of Justice JB Pardiwala and Justice KV Viswanathan expressed deep concern over ongoing delays in approving resolution plans under the Insolvency and Bankruptcy Code. Describing the situation as grim, they referred the matter to the Chief Justice for further directions, which prompted the current proceedings.
Backlog Concerns And Impact
The April 29 judgment highlighted that the National Company Law Tribunal had 383 pending applications for the approval of resolution plans. The delays in these cases ranged from 48 days to 738 days, with some instances stretching to nearly four years.
The bench had observed that such extensive delays run counter to the core purpose of the Insolvency and Bankruptcy Code. It warned that prolonged timelines defeat the law’s objective of ensuring swift insolvency resolutions, protecting the value of assets, and supporting economic efficiency.
