Govt mulls substantially expanding NCLAT strength to speed up insolvency, M&A appeals
NCLAT) to 20 (including the chairman) from the currently-sanctioned 12, a person aware of details told ET.
The idea is to expedite the disposal of appeals against adjudicating authorities in cases ranging from insolvency, mergers and acquisitions to antitrust matters at a time when the economy is expanding at a fast pace, highlighting the indispensability of a much robust dispute resolution system, he said.
The proposal comes on top of another plan to bolster the number of members at the National Company Law Tribunal (NCLT) to 163 (including its president) from the sanctioned 63, aimed at faster clearances of such cases, he added.
“A final decision on these proposals will be taken by the Cabinet. A Cabinet note for this purpose has been floated by the ministry of corporate affairs (MCA),” said the person quoted above.
At present, apart from chairman Ashok Bhushan, the NCLAT has two judicial members and six technical ones, according to its website.
In October, another judicial member Rakesh Kumar quit, following an adverse Supreme Court ruling against him.
NCLAT was set up under Section 410 of the Companies Act, 2013, for hearing appeals against the NCLT (for matters relating to the company and insolvency laws) and orders passed by regulators, such as the Insolvency and Bankruptcy Board of India (IBBI), the Competition Commission of India (CCI) and the National Financial Reporting Authority.
However, expanding the strength of both NCLAT and NCLT is easier said than done and will require the cooperation of judiciary as well, said a Delhi-based expert involved in the shaping of the insolvency law.
“Choosing the right person for the job after thorough background checks, etc. and convincing good people to become NCLT
