Supreme Court Seeks Proposals From NCLT, NCLAT Heads To Address Infrastructure Deficiencies

The Supreme Court on Thursday directed the President of the National Company Law Tribunal (NCLT) and the Chairperson of the National Company Law Appellate Tribunal (NCLAT) to submit a comprehensive proposal outlining measures to address infrastructure deficiencies and improve the functioning of the tribunals.

A Bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and V. Mohana said the two tribunal heads would be best placed to identify the requirements needed to strengthen their day-to-day functioning.

"However it seems to us that the most appropriate authority to assist us in the matter would be the Learned Presidents of NCLAT and NCLT. We therefore request them to submit a comprehensive proposal with respect to the requirements that would strengthen the day to day functioning of the tribunals.", the Court said.

The court is examining the issue after taking suo motu cognizance on April 29, 2026, of delays in the approval of resolution plans pending before various NCLT Benches. It had observed that the Insolvency and Bankruptcy Code's objective of time-bound resolution was "impossible to achieve" in the prevailing circumstances.

For the Union of India, Attorney General R. Venkataramani proposed that the government's status report be shared with the NCLT President and that a joint meeting be held with the government and the Bar to collate their views before proceeding further.

The Bench indicated that the proposed exercise should identify requirements according to their urgency and ensure that matters requiring priority receive appropriate attention.

“I propose to have a joint meeting of the president ... government and the bar. We share all their views, and then proceed further, giving priority to matters which require priority.”, the AG submitted.

The Attorney General also referred to the need for a graded approach, dividing requirements into short-term, medium-term and long term measures. He submitted that the exercise should categorise the identified requirements according to urgency rather than treating them as a single set of demands.

During the hearing, a submission was made that the deficiencies were serious and had not been adequately addressed despite the Court's earlier directions.

Another submission highlighted that the shortage of members and limited functioning capacity could prevent certain categories of cases, including matters concerning personal guarantors, from being taken up because they remained at the bottom of the cause list.

During the hearing, the CJI however observed that, “This system, we are compelled to observe, is completely hijacked by Ministry of Corporate Affairs."

The CJI also emphasised the need for immediate and long-term solutions, stating, “So therefore, some short term, there's some short term and some long term solutions. That is the only way."

The Supreme Court on September 21 had directed the Centre to file a status report on the basic amenities available at the Principal and regional Benches of the National Company Law Tribunal (NCLT) and identify the amenities urgently required.

The Court directed the Union of India to identify the amenities urgently required in consultation with the President of the NCLT. It also directed the NCLT Principal Bench Bar Association to collate details of the infrastructure and facilities available at the Principal and regional Benches and place the material before the Court.