Supreme Court flags grosslypoor infra at IBC tribunals
The Supreme Court of India criticized the government for the poor infrastructure and high vacancy rates at the National Company Law Tribunal (NCLT) and NCLAT. The Chief Justice emphasized that these tribunals are critical to the economy and require basic amenities to function effectively.
Why it matters
The lack of resources in these tribunals threatens the efficiency of India's insolvency and bankruptcy processes, which are vital for the banking and infrastructure sectors.
NEW DELHI: Frowning upon grossly inadequate infrastructure and huge vacancies in National Company Law Tribunal (NCLT) and appellate NCLAT, Supreme Court Monday said the situation is unacceptable as these two tribunals have to daily deal with Insolvency and Bankruptcy Code matters involving thousands of crores of rupees."They are govt's lifeline now. All nationalised banks, banking sector and all infrastructure projects are also matter of examination before these tribunals only," said a bench of CJI Surya Kant and Justices Joymalya Bagchi and V Mohana after senior advocate Sanjiv Sen on behalf of NCLT Bar Association pointed out that the tribunals' function from dilapidated buildings with poor infrastructure…
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