Supreme Court Takes Suo Motu Case Over NCLT Appointment Delays & Infrastructure Issues

The Supreme Court has registered a suo motu case over the delays in the appointment of members in National Company Law Tribunals and infrastructure issues.

The suo motu case, titled "In Re : Appointment of Judicial and Technical Members and Inadequate Infrastructure in National Company Law Tribunal (NCLT) and Ancillary Issues" was registered on May 19, following the April 29 judgment in AVJ Heightss Apartment Onwers Association v. IIFL Finance  Ltd where a bench comprising Justice JB Pardiwala and Justice KV Viswanathan expressed concerns over the inordinate delays in approving resolution plans under the Insolvency and Bankruptcy Code. Taking suo motu cognisance of the "grim situation", the said bench had referred the matter to the Chief Justice of India for further action, following which the suo motu case was registered.

The bench had noted that 383 applications for approval of resolution plans are currently pending, with delays ranging from 48 days to 738 days, and in some cases extending up to four years. It observed that such prolonged delays defeat the very purpose of the Insolvency and Bankruptcy Code, as they undermine its core objective of ensuring time-bound resolution, preserving asset value, and maintaining economic efficiency. While the sanctioned strength of the NCLT benches stands at 63 members, only 28 judicial members and 26 technical members are currently in position. The Court noted that this deficit has led to frequent changes in bench composition, resulting in half-day sittings and further delays.

"The issues need to addressed on war footing. Otherwise, the purpose of enacting IBC would stand frustrated. As we have taken suo motu cognisance let the matter be placed before CJI for further orders.”, the bench had observed in the AVJ judgment.

The matter was considered by a bench comprising CJI Surya Kant, Justice Joymalya Bagchi and Justice V Mohana yesterday. The bench adjourned the matter, noting that it would prefer to wait for some time, as some appointments are underway.

"Wait for some time. Members are likely to be assigned," CJI said. One counsel pointed out that the suo motu cognisance was taken not just on the issue of appointments, but also regarding infrastructure and disposal rate.

"My brothers have rightly raised the issue; it is a serious concern," CJI said.

In Re : Appointment of Judicial and Technical Members and Inadequate Infrastructure in National Company Law Tribunal (NCLT) and Ancillary Issues | SMW(C) No. 16/2026