NCLT, NCLAT Vacancies Must Be Filled On War Footing; RERA Must Be Adequately Staffed : Supreme Court

The Supreme Court directed the Union Government to fill up the vacancies at the National Company Law Tribunals(NCLT) and the National Company Law Appellate Tribunal(NCLAT) on a "war-footing"."Dedicated IBC benches with additional strength should be constituted. Services of retired judges may be utilized on ad hoc basis until regular appointments are made," the Court observed.The Court noted that though such directions were issued earlier also, no effective step has been taken on the ground.The Court further directed the Union Government, within three months, to file a compliance report on measures taken to upgrade NCLT/NCLAT infrastructure nationwide."The recent closure of Chandigarh NCLT and portions of Delhi NCLT due to water seepage in the Courtrooms and Chambers of Members underscores the urgency of robust infrastructural support," the Court said.The Government shall prioritize e-filing, video-conferencing, and dedicated case management systems for IBC matters, in view of the heavy caseload before NCLTs, the Court said.Further, the Court directed the States to ensure that RERA(Real Estate Regulatory Authority) authorities are adequately staffed with infrastructure, experts, and resources. At least one member of every RERA must be a legal expert or consumer advocate with proven expertise in real estate field. RERAs must conduct thorough diligence before granting approval to any project. "Failure to do so, resulting in miscarriage of justice, shall amount to an error unpardonable in law and may invite strict intervention by this Court," the Court warned.A bench comprising Justice JB Pardiwala and Justice R Mahadevan issued these directions while dealing with an insolvency application against a housing project.The judgment authored by Justice Mahadevan issued a slew of directions to protect the interests of homebuyers and to fortify the regulatory framework.Also from the judgment - 'Right To Housing A Fundamental Right Under Article 21': Supreme Court Urges Centre To Create Revival Fund For Stressed Real Estate ProjectsEvery New Housing Project Must Be Registered With Local Revenue Authority On Buyer Paying 20% Cost : Supreme CourtCause Title: MANSI BRAR FERNANDES Versus SHUBHA SHARMA AND ANR. (and connected cases)Citation : 2025 LiveLaw (SC) 903Click Here To Read/Download Judgment

NCLT, NCLAT Vacancies Must Be Filled On War Footing; RERA Must Be Adequately Staffed : Supreme Court

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