The National Company Law Tribunal ( NCLT ) has a backlog of 19,969 cases, as per the report of the Standing Committee on Finance.
The committee has raised concerns over stating the procedural delays, manpower shortages, and infrastructure constraints as key issues.
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Since its establishment of NCLT in 2016, it has played an important role in expediting corporate dispute resolution and encouraging the facileness of doing business. The committee noted that while the tribunal has successfully disposed of 86,828 cases by August 2024, there is a pendency of 19,969 cases reflecting its challenges which should be addressed.
The Committee added that resolving cases, especially those related to insolvency and liquidation, is taking too long. These delays put pressure on the tribunal’s resources and go against its goal of resolving corporate disputes quickly and efficiently.
The standing committee has made a note on the budgetary side of the NCLT. It has increased over the years, from ₹52.15 crore in 2019-20 to ₹89.36 crore in 2022-23. However, a marginal reduction to ₹89.31 crore in the 2024-25 Budget Estimate (BE) has raised concerns about the adequacy of funding to address operational gaps.
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With regards to manpower shortages, the committee noted that with 238 regular posts abolished due to recruitment delays but revived in 2023. Although recruitment is underway for 100 additional members, the tribunal’s demand for 729 posts indicates a substantial shortfall.
The Committee observed that while contractual staff provide interim relief, they are no substitute for a permanent workforce.
According to the committee, infrastructure constraints further exacerbate delays. Despite the introduction of E-Courts and hybrid hearing systems across 16 benches, the Committee noted that gaps in physical infrastructure and incomplete digital integration continue to impede functioning, the committee added in its report.
The Ministry’s plan to develop an integrated IT platform and expand the number of benches has been acknowledged as a positive step, but the Committee stated the need for timely implementation to improve the tribunal’s performance.
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