Revamping India's Insolvency Backbone: Strengthening NCLT/NCLAT Infrastructure

In a pressing call for infrastructure reform, BJD Rajya Sabha MP Sasmit Patra has highlighted the urgent need for upgrades to the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT). Patra addressed a detailed letter to Harsh Malhotra, the Minister of State for Corporate Affairs, underscoring the challenges faced by these tribunals in serving as pivotal components of India's economic and insolvency structure.

Patra's letter emphasized the necessity for developing permanent and modern infrastructure for tribunal benches, ensuring uninterrupted courtroom operations with reliable power backups, and increasing bench strength and staffing. He also stressed the importance of improved support for judicial and technical members alongside a review of the current three-year rotation policy to foster continuity and specialization.

Highlighting frequent infrastructural issues, Patra cited a recent power outage at the NCLT's Principal Bench, noting similar challenges during last year's monsoon. Despite these limitations, the NCLT has played a crucial role in driving India's insolvency framework. Patra concluded by calling for broader institutional support, emphasizing that the NCLT and its members deserve recognition rather than criticism as they navigate these difficulties.

(With inputs from agencies.)