Full Breakdown
Supreme Court Flags NCLT Infrastructure Gaps and Member Shortages
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Core Issue: Infrastructure and Staffing Crisis at the NCLT and NCLAT
On September 21, the Supreme Court heard a suo motu petition filed by the NCLT Bar Association that highlighted severe infrastructure deficiencies and a shortage of judicial and technical members at the National Company Law Tribunal (NCLT) and its appellate counterpart, the National Company Law Appellate Tribunal (NCLAT). The bench, comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V Mohana, directed the Union of India to compile a detailed status report on amenities, staffing and technological support at the principal, regional and circuit benches.
Background & Context
The NCLT and NCLAT were created to adjudicate corporate insolvency, bankruptcy and other company law matters. Their jurisdiction expanded after the Insolvency and Bankruptcy Code (IBC) came into force in May 2016, yet the sanctioned strength of the NCLT has remained at 63 members. The Bar Association argued that the tribunals now handle disputes involving “thousands of crores of rupees” and therefore require robust physical and technological infrastructure, permanent administrative staff and dedicated judgment writers.
Data & Statistics
- Sanctioned strength: 63 members (judicial and technical combined).
- Current staffing (as of June 30 2026): 26 judicial members and 25 technical members, including the President.
- Vacancies: 13 judicial and 20 technical posts remain unfilled.
- Imminent retirements: 18 members slated to retire by December 2027.
- Administrative staff: All 246 court masters and support staff are on temporary contracts.
- Bench operations: At least 18 NCLT benches are limited to half-day sittings under a roster effective from August 24.
- Tribunal vacancies overall: Roughly 90 vacancies across tribunals, with 81 being processed by the selection committee.
- Extension eligibility: 248 members of various tribunals are eligible for extension under Section 24 of the Tribunal Reforms Act 2026.
Official Statements & Responses
Chief Justice Surya Kant stressed that the tribunals cannot function effectively without basic amenities, permanent buildings, staff and technology. Attorney General R Venkataramani said the appointment process for new members has been set in motion and opposed ad-hoc extensions for retiring officials. Additional Solicitor General Aishwarya Bhati was instructed to furnish details of vacancies in Debt Recovery Appellate Tribunals (DRATs) by September 25.
Conflicting Reports & Gaps
- Vacancy counts: The Bar Association’s figures (63 sanctioned, 50 filled) differ from a separate report citing around 90 total vacancies across tribunals.
- Extension numbers: The Attorney General’s 248 eligible members include tribunals beyond the NCLT/NCLAT, leaving the exact impact on these bodies unclear.
- Infrastructure specifics: The Court’s directives call for a comprehensive tabulation of facilities, but sources do not detail the exact nature of shortfalls (e.g., courtroom size, IT systems).
What’s Next
The Supreme Court has ordered:
1. The Union of India to submit a status report on basic amenities at all NCLT benches.
2. The NCLT Bar Association to collect and present regional bench infrastructure data in tabular form.
3. Additional Solicitor General Bhati to provide DRAT vacancy details by September 25.
The matter is scheduled to be listed again after two weeks for further consideration, giving the government time to address the identified gaps and propose any necessary extensions for retiring members.