Supreme Court's Concern over NCLT Delays
The Supreme Court has expressed serious concern over the delays in the National Company Law Tribunal (NCLT) regarding the approval of resolution plans for companies undergoing insolvency proceedings.
Key Issues Highlighted
- Pending Applications: There are 383 applications awaiting approval.
- Duration of Delays: Delays range from 48 days to 738 days, extending up to four years in some cases.
- Reasons for Delays:
- Inadequate infrastructure.
- Half-day sittings due to changing bench compositions.
- Numerous objections filed by stakeholders.
Judicial Observations
- The issue has been taken up suo motu in public interest by the bench comprising Justices J B Pardiwala and K V Viswanathan.
- The court emphasized the need for immediate action to prevent the frustration of the objectives of the Insolvency and Bankruptcy Code, 2016.
Staffing Concerns
- The functioning is affected by a severe shortage of members.
- There are only 28 judicial and 26 technical members against a sanctioned strength of 63 members.
Recent Developments
- Supreme Court directed the Insolvency and Bankruptcy Board of India (IBBI) and the NCLT principal bench to provide nationwide data on pending approvals and reasons for delays.
- The directive followed a case involving AVJ Developers (India) where a resolution plan has been pending for nearly two years.
