Odisha: BJD MP Sasmit Patra seeks infrastructure boost for NCLT, NCLAT
Bhubaneswar, May 18
In the wake of a sudden power outage resulting in the disruption of court proceedings at the Principal Bench of the National Company Law Tribunal in Delhi, Rajya Sabha Member of Parliament and senior Biju Janata Dal leader Sasmit Patra on Monday wrote to the Minister of State for Corporate Affairs, Harsh Malhotra, urging immediate measures to strengthen the infrastructure and institutional capacity of the National Company Law Tribunal and the National Company Law Appellate Tribunal.
In his letter, Patra highlighted the growing importance of the National Company Law Tribunal/National Company Law Appellate Tribunal ecosystem as a central pillar of India's economic and insolvency framework, while drawing attention to the difficult circumstances under which these institutions continue to function.
Referring to reports of a power outage earlier on Monday at the National Company Law Tribunal Principal Bench at the CGO Complex, Lodhi Road, New Delhi, which allegedly disrupted court proceedings due to inadequate backup support, Patra stated that such incidents underscore the need for a broader institutional review of tribunal infrastructure across the country.
The senior Biju Janata Dal leader further pointed out that during the monsoon last year, courtrooms at the CGO Complex reportedly flooded, compelling courts to operate in shared courtrooms and on half-day shifts.
The letter also noted that Judicial and Technical Members continue to discharge responsibilities from constrained spaces within temporary and rented premises, while the National Company Law Appellate Tribunal continues to function from rented Mahanagar Telephone Nigam Limited premises.
"Many practitioners appearing before the National Company Law Tribunal would attest to the difficult circumstances in which the institution continues to function," wrote Patra.
He added that during the monsoon last year, courtrooms at the CGO Complex reportedly flooded, compelling courts to operate in shared courtrooms and on half-day shifts. Judicial and Technical Members, he said, continue to discharge responsibilities from constrained spaces within temporary and rented premises.
Despite these infrastructural and administrative constraints, Patra noted that the National Company Law Tribunal has evolved from a Company Law Tribunal into the backbone of India's insolvency framework, delivering significant economic outcomes under mounting judicial workloads and limited institutional support.
In his communication, Patra urged the Ministry of Corporate Affairs to consider urgent measures, including the development of permanent and modern infrastructure for National Company Law Tribunal/National Company Law Appellate Tribunal benches, ensuring uninterrupted courtroom operations with adequate power backup, augmenting bench strength along with permanent staffing, improving institutional support for Judicial and Technical Members, and reviewing the compulsory three-year rotation policy to promote continuity and specialisation.
Patra emphasised that institutions entrusted with responsibilities of such economic significance deserve commensurate institutional support and recognition.
"The National Company Law Tribunal and its Members deserve institutional support and recognition while functioning under extraordinarily difficult circumstances," he stated.
— IANS
Reader Comments
Good initiative by Sasmit Patra ji. But this is just the tip of the iceberg. Even the Supreme Court has infrastructure issues. Our courts need a complete overhaul, not just bandaids. The Insolvency and Bankruptcy Code is a game-changer for the economy but without proper NCLT infrastructure, it's like having a Ferrari with bicycle tyres.
I work as a corporate lawyer and I can tell you, this is not new. We've been raising these issues for years. NCLT benches operate from rented buildings with no proper libraries, no canteens, no parking. Meanwhile, the government spends crores on new buildings for ministries. Priorities, please! 🤷♂️
The three-year rotation policy point is crucial! How can you expect judges to develop expertise in complex insolvency matters if you keep shuffling them like cards? The NCLT judges are handling cases involving thousands of crores and job losses – they need stability, not rotation. Common sense, yaar!
Hats off to Sasmit Patra for raising this in Parliament. The NCLT is literally handling the economic future of India with IBC cases. If a power cut can stop court proceedings, imagine the delays in cases affecting thousands of employees and creditors. The message to the Ministry is clear: Walk the talk on ease of doing business.
This is what happens when you keep institutions on temporary premises for decades. Mahanagar Telephone Nigam Limited premises for NCLAT? Really? We need permanent buildings with proper power backup, courtrooms, and digital infrastructure. Otherwise, it's just lip service
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