‘Totally hijacked’: Supreme Court reprimands Ministry of Corporate Affairs over autonomy of NCLT | Today’s news

The Supreme Court on Thursday slammed the Ministry of Corporate Affairs (MCA) for its handling of the National Company Law Tribunal (NCLT), observing that the ministry had “completely hijacked” its administration, undermining the tribunal’s autonomy and affecting its functioning.

“We are forced to note that it has been completely hijacked by the Ministry of Corporate Affairs. That is the problem. And it interferes with the autonomy of the institution,” Chief Justice of India Surya Kant said.

“The ministry wants to have complete control over the institution. And that is the biggest misfortune,” added the bench.

The comments were made during the suo motu proceedings on administrative deficiencies at the NCLT, which decides on the insolvency proceedings of companies under the Insolvency and Bankruptcy Code (IBC) and disputes under the Companies Act.

The court also expressed concern that insolvency proceedings took precedence over matters arising from the Companies Act, which led to delays in dealing with the latter category. Lawyers representing the NCLT bar said in court that the list of cases reflected this imbalance.

Mint approached the Ministry of Corporate Affairs for comment. His response was still awaited at the time of publication.

Read also | NCLT capacity crisis puts insolvency timetables under pressure

Vacancies, infrastructure problems

In his court appearance, The Bar Association of NCLT has highlighted the severe shortage of judicial and technical members, saying it is affecting the tribunal’s ability to conduct regular hearings. It said 18 NCLT benches are holding half-day sessions due to shortage of members. As of June 30, 2026, the tribunal had 26 judicial members and 25 technical members, including its president, against a sanctioned number of 63, the association said.

The association also raised concerns over stalled renovation work at the CGO complex, inadequate courtroom equipment and absence of permanent support staff. It said 246 proposed support staff positions have not been made operational, with magistrates, court clerks and other staff continuing to work mostly on temporary or contract arrangements. The hearings were also reportedly disrupted by frequent outages in the tribunal’s document management system.

Senior advocate Sanjiv Sen, representing the NCLT bar, on Thursday highlighted the deteriorating infrastructure at the tribunal’s main bench in Delhi. He told the court that the floors were closed due to poor building conditions, leaving the courtrooms struggling to function effectively.

Attorney General R. Venkataramani told the court that recommendations regarding the appointment were being prepared and suggested a joint meeting of government officials, the NCLT president and representatives of the Bar Association to address the concerns.

The Supreme Court subsequently asked the Chairpersons of the NCLT and the National Company Law Appellate Tribunal (NCLAT) to submit comprehensive proposals identifying their infrastructure, staffing and administrative requirements.

Read also | Personal guarantor insolvency: Why the regulator tightens the data trail

Long insolvency proceedings

The court’s intervention comes against the backdrop of protracted insolvency proceedings. A report by the Insolvency and Bankruptcy Board of India (IBBI) marking the decade of IBC said ongoing corporate insolvency resolution processes (CIRPs) took an average of 713 days in March 2025, with around 78% exceeding the statutory 270-day deadline. The report identified court delays, litigation and multiple proceedings among the main challenges to timely resolution.

The Economic Survey 2025-26 also highlighted the scale of the problem, noting that nearly 30,600 cases were pending before the NCLT in March 2025. The average CIRP duration was 713 days, more than double the 330-day outer limit assumed under the IBC, while cases completed in FY25 averaged 853 days. The survey also noted that only 30 benches of the NCLT deal with IBC and Companies Act matters, adding to capacity constraints.

Mint On 4 September, it announced that the lack of members and infrastructure in the insolvency tribunal in India came under the spotlight after a five-member special panel hearing the personal insolvency case of Zee founder Subhash Chandra adjourned the proceedings as no tribunal was available. The case involves Chandra proposed ₹6.5 million installment plan.

Read also | How India should revise its insolvency law to spur private capital spending and growth