A bench headed by Chief Justice of India Surya Kant and comprising Justices Joymalya Bagchi and V. Mohana said NCLT and NCLAT have now become extremely important institutions. The bench noted that cases involving nationalised banks, the banking sector and infrastructure projects are also heard by these tribunals.
During the hearing, senior advocate Sanjeev Sen, appearing for the NCLT Bar Association, brought the condition of the tribunals to the court’s attention. He informed the court that several benches are functioning from dilapidated buildings. He also said that several posts for members have remained vacant for a long time, affecting the hearing and disposal of cases.
‘How can an institution function without basic facilities?’
Expressing concern over the situation, CJI Surya Kant told the government, “How can an institution function unless you provide basic facilities?” The court made it clear that tribunals entrusted with handling such important economic matters require adequate resources and a better working arrangement.
The Supreme Court directed the Central government to file a detailed status report on the existing infrastructure at the main and other NCLT benches. The court also directed the NCLT President to consult on identifying the necessary facilities and requirements at the different benches.
The court’s observations come at a time when NCLT and NCLAT are playing an important role in the country’s insolvency and bankruptcy framework. Economic disputes and insolvency proceedings involving companies, banks and major infrastructure projects come before these tribunals.
The Supreme Court’s directions underline the need for adequate infrastructure and sufficient human resources at institutions responsible for handling economic matters involving thousands of crores of rupees.
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