Supreme Court Criticizes Corporate Affairs Ministry Over NCLT Autonomy
· India · LiveMint, The Hindu, Times of India
Chief Justice of India Surya Kant has accused the ministry of corporate affairs of hijacking the administration of the National Company Law Tribunal. The Supreme Court bench observed that the ministry's excessive grip on the tribunal is undermining its institutional autonomy and worsening resolution delays. During suo motu proceedings, the court highlighted that insolvency cases are being prioritised over Companies Act disputes, causing significant backlogs. The NCLT Bar Association reported that 18 benches are currently operating on half-day sittings due to a severe shortage of judicial and technical members. Additionally, the tribunal faces ongoing infrastructure challenges, including stalled renovations at the CGO Complex and a lack of permanent support staff.
Why it matters
The ongoing administrative crisis at the NCLT directly impacts the speed and efficiency of corporate insolvency resolutions in India, affecting creditors, businesses, and the broader economy.
Read the original report — LiveMint
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