NCLT Bar Association: NCLT Half-Day Sittings Supreme Court Petition

• The NCLT Bar Association has filed an intervention application with the Supreme Court regarding half-day sittings at 18 NCLT benches.
• These reduced operational hours are primarily due to a significant NCLT member shortage, stemming from unfilled vacancies.
• Despite an expanded jurisdiction under the Insolvency and Bankruptcy Code (IBC), the NCLT's sanctioned strength of 63 members contrasts with its current 51 members as of June 30, 2026.
• The Bar Association seeks proactive appointment of successor members to prevent further NCLT delays and mounting case arrears.
• Concerns were also raised about inadequate physical infrastructure, including roof leakage, at NCLT facilities in Delhi.

The ongoing NCLT half-day sittings and the broader NCLT member shortage have profound implications for the resolution of corporate insolvency and company law cases.

The National Company Law Tribunal (NCLT) is currently facing significant operational challenges, prompting its Bar Association to approach the Supreme Court. The NCLT Bar Association has formally intervened in an ongoing Supreme Court matter, highlighting that a substantial number of NCLT benches are operating on reduced schedules. Specifically, at least eighteen NCLT benches are conducting only half-day sittings, a direct consequence of an acute shortage of members.

This critical issue was brought to the attention of the Supreme Court through an intervention application filed by the NCLT Bar Association. The application was submitted within the framework of the Supreme Court's existing suo motu case, which is already examining the appointment of both judicial and technical members, alongside concerns regarding inadequate infrastructure across the NCLT. The Association's petition underscores the severe impact of these operational limitations on the tribunal's ability to efficiently handle its caseload.

The roster, which became effective on August 24, explicitly confirms that a minimum of eighteen NCLT benches have been relegated to half-day operations. This reduction in sitting hours is directly attributed to the twin problems of member retirements and a general scarcity of qualified personnel. The NCLT Bar Association's intervention application serves as a formal plea to the Supreme Court to address these systemic issues, which are impeding the tribunal's core functions.

The underlying cause of these operational constraints at the NCLT stems from a persistent gap between its sanctioned strength and the actual number of serving members. Despite a substantial expansion in its jurisdiction following the enactment of the Insolvency and Bankruptcy Code (IBC), the tribunal's sanctioned strength has remained at 63 members. However, as of June 30, 2026, the NCLT comprises only 26 judicial members and 25 technical members, a total that includes the President. This significant disparity between the authorized and actual workforce leaves the tribunal critically understaffed.

The NCLT Bar Association's petition emphasizes that vacancies frequently arise due to members reaching retirement age or completing their designated tenures. Crucially, these positions often remain unfilled for extended periods, leading to several benches functioning with a reduced complement of members. This chronic understaffing directly contributes to the NCLT's inability to process cases efficiently, resulting in mounting NCLT case arrears across India.

To mitigate these issues, the Bar Association has specifically requested the Supreme Court to mandate the appointment of successor members well in advance of incumbents demitting office. This proactive approach, they argue, is essential to ensure a seamless transition and prevent further exacerbation of the NCLT member shortage, which is currently causing significant NCLT delays in critical insolvency and company law matters.

The ongoing NCLT half-day sittings and the broader NCLT member shortage have profound implications for the resolution of corporate insolvency and company law cases. The reduced operational capacity inevitably leads to prolonged resolution times, directly impacting businesses and creditors awaiting decisions. This situation underscores the urgency of the Supreme Court's intervention, particularly given its existing suo motu case concerning Supreme Court NCLT vacancies and infrastructure.

Beyond staffing, the NCLT Bar Association also voiced serious concerns regarding the physical infrastructure supporting the tribunal, specifically citing issues within the Delhi NCLT facilities. While the full extent of these infrastructure problems was not detailed, the mention of roof leakage suggests a broader challenge that could further impede the tribunal's functioning and the working conditions for its members and legal professionals.

For legal practitioners and compliance officers, these developments signal a necessity to anticipate increased delays and extended timelines for matters before the NCLT. The chronic NCLT member shortage and the resulting operational adjustments, such as half-day sittings, demand strategic recalibrations in case management and client expectations for all Insolvency Bankruptcy Code NCLT delays and company law proceedings, highlighting the critical need for the Supreme Court to address NCLT case arrears in India.

Lawyers and compliance officers should anticipate increased delays and prolonged resolution times for matters before the NCLT due to chronic member shortages and reduced sitting hours, necessitating strategic adjustments in case management and client expectations for insolvency and company law proceedings.

Source: Reporting based on court filings