The Standing Committee on Finance, under the leadership of BJP MP Bhartruhari Mahtab, has formally requested the Ministry of Corporate Affairs (MCA) to provide detailed information on measures taken to enhance the manpower and infrastructure of the National Company Law Tribunal (NCLT). This inquiry is part of the House Panel’s assessment of the MCA’s demands for grants allocation for the fiscal year 2025-26 and addresses concerns regarding the efficiency and effectiveness of the NCLT in managing its caseload.
Expansion of benches and manpower
A significant aspect of the committee’s enquiry focuses on augmenting the NCLT’s capacity by establishing additional benches and recruiting qualified personnel. The committee has highlighted the prolonged vacancies, noting that 15 member positions have remained unfilled since December 2020. This shortage is believed to contribute substantially to the backlog of cases and delays in judicial proceedings. The committee has sought a comprehensive update from the MCA on the current status of these vacancies and the steps being taken to expedite the recruitment process.
Case disposal and pendency statistics
Accurate and up-to-date data on case disposal rates and pending cases are crucial for assessing the tribunal’s performance. The committee has requested the MCA to furnish the latest statistics as of February 10, 2025, including, total number of pending cases: a breakdown of cases at various stages, particularly those awaiting admission; average timeframes: metrics detailing the average duration for both the admission of cases and their final resolution.
As of August 2024, the NCLT had disposed of 86,828 cases since its inception in 2016. However, a backlog of 19,969 cases remained, reflecting challenges such as procedural delays, infrastructure constraints, and manpower shortages. The committee is keen to understand how these figures have evolved and what measures are in place to address any persisting backlog.
Implementation of virtual hearings and e-courts
In response to challenges posed by the COVID-19 pandemic, the judiciary, including the NCLT, adopted virtual hearings to maintain continuity in legal proceedings. The committee has inquired about current status: the extent to which virtual hearings and e-courts have been integrated into the NCLT’s operations; case statistics: the number of cases resolved through virtual platforms compared to traditional in-person hearings over the past five years; financial investment: details on the funds allocated and utilised for the development and maintenance of virtual hearing infrastructure during this period.
Implications and expectations
The committee’s comprehensive inquiry reflects a commitment to enhancing the operational efficiency of the NCLT. By addressing manpower shortages, infrastructure deficits, and leveraging technology through virtual hearings, the goal is to reduce case backlogs and expedite the delivery of justice. The MCA’s detailed response will be pivotal in formulating strategies to strengthen the NCLT’s capacity and effectiveness in the corporate judicial landscape, said economy watchers.