Parliamentary Panel Recommends Dedicated NCLT Benches to Expedite Insolvency and Bankruptcy Cases
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In a significant move aimed at streamlining corporate dispute resolution and accelerating corporate rescue mechanisms, a parliamentary committee has formally recommended the creation of dedicated benches within the National Company Law Tribunal (NCLT). With insolvency proceedings currently consuming more than half of the tribunal's total judicial bandwidth, policymakers are stepping up efforts to decongest the vital quasi-judicial body and ensure timely justice delivery for corporate stakeholders.
Balancing Insolvency Jurisdiction with Core Companies Act Responsibilities
The sweeping recommendations form a core part of the comprehensive report presented by the Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice, which was officially tabled in Parliament. Beyond its principal bench and the New Delhi bench, the NCLT currently operates specialized regional benches across major commercial hubs including Mumbai, Bengaluru, Chennai, Kolkata, Ahmedabad, Hyderabad, Chandigarh, Allahabad, Cuttack, Kochi, and Indore.
However, the parliamentary panel noted with concern that the exponential growth of insolvency cases under the Insolvency and Bankruptcy Code (IBC) should not inadvertently dilute or sideline the tribunal's equally critical responsibilities mandated under the Companies Act, 2013. These statutory duties encompass vital corporate governance oversight, cross-border and domestic mergers and acquisitions, oppression and mismanagement litigation, and the active protection of minority stakeholder interests.
Ministry of Corporate Affairs Asked to Examine IBC Bench Feasibility
To address mounting backlogs and systemic bottlenecks, the committee has strongly urged the Ministry of Corporate Affairs to actively examine the practical feasibility of establishing a dedicated, specialized IBC bench within the tribunal structure.
Crucially, the panel emphasized that any newly formed specialized bench must be fully equipped with adequate and competent judicial as well as technical members. With insolvency filings accounting for the lion's share of day-to-day litigation before the tribunal, structural reforms of this magnitude are widely expected to enhance ease of doing business, reduce judicial delays, and restore optimal operational efficiency across India's corporate legal ecosystem.
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