Most NCLT vacancies filled, govt eyes faster clearances
ministry of corporate affairs (MCA) is seeking faster clearances of merger and acquisition (M&A) deals besides expeditious disposal of insolvency cases by the National Company Law Tribunal (NCLT), as it has substantially bolstered the member strength of the adjudicating authority by filling up most vacancies, a senior official said.
«As many as 34 members have been added to the NCLT in less than a year now, taking the total strength to 57 (including its president), much closer to the sanctioned strength of 63. The next process (to appoint a few more) is also on,» the official said.
Thus, the number of members against the sanctioned strength is about 90%, which is higher than in most high courts, he added.
After bolstering the NCLT strength, the MCA has urged the adjudicating authority to also devote more time to hear important cases, especially M&A, under the Companies Act.
Analysts had flagged delays in the clearances of Companies Act matters by the NCLT, as its members were more focussed on handling the massive number of cases under the Insolvency and Bankruptcy Code that stipulates a 270-day time-frame for resolution. But given the wide-scale litigation, even key IBC cases have been facing delays.
The parliamentary standing committee on finance under former MoS for finance Jayant Sinha had earlier blamed the vacancies at the NCLT, among others, for inordinate delays in insolvency resolution.
According to Insolvency and Bankruptcy Board of India data, 65% of cases, where the resolution process was going on as of June 2023, breached 270-day time frame.
