‘Completely hijacked’: Supreme Court rebukes corporate affairs ministry over NCLT autonomy

Observing that the government ‘wants to have complete grip over the institution’, Chief Justice Surya Kant warned that executive control is impinging on tribunal autonomy as resolution delays worsen.

The Supreme Court on Thursday criticized the ministry of corporate affairs (MCA) over 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 compelled to observe that this has been completely hijacked by the ministry of corporate affairs. That is the problem. And that is impinging on the autonomy of the institution,” Chief Justice of India Surya Kant said.

“The ministry wants to have a complete grip over the institution. And that’s what’s most unfortunate,” the bench added.

The observations came during a hearing of suo motu proceedings examining administrative shortcomings at the NCLT, which adjudicates corporate insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) and disputes under the Companies Act.

The bench also expressed concern that insolvency proceedings were being prioritised over matters arising under the Companies Act, resulting in delays in hearing the latter category. Lawyers representing the NCLT Bar Association told the court that the listing of cases reflected this imbalance.

Mint reached out to the corporate affairs ministry for comment. Its response was still awaited at the time of publication.

Vacancies, infrastructure woes

In its intervention before the court, the NCLT Bar Association flagged severe shortages of judicial and technical members, saying these were affecting the tribunal’s ability to conduct regular hearings. It said 18 NCLT benches were holding half-day sittings because of a shortage of members. As of 30 June 2026, the tribunal had 26 judicial members and 25 technical members, including its president, against a sanctioned strength of 63, the association said.

The association also raised concerns over stalled renovation work at the CGO Complex, inadequate courtroom facilities, and the absence of permanent support staff. It said 246 proposed support staff positions had not been operationalised, with court masters, bench officers and other personnel continuing to work largely on temporary or contractual arrangements. Frequent outages of the tribunal’s document management system had also disrupted hearings, it alleged.

Senior advocate Sanjiv Sen, representing the NCLT Bar Association, highlighted the deteriorating infrastructure at the tribunal’s principal bench in Delhi on Thursday. He told the court that floors had been shut because of poor building conditions, leaving courtrooms struggling to function effectively.

Attorney general R. Venkataramani told the court that appointment recommendations were in the pipeline and proposed a joint meeting involving government officials, the NCLT president, and bar representatives to address the concerns.

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

Prolonged insolvency proceedings

The court’s intervention comes against the backdrop of prolonged corporate insolvency proceedings. An Insolvency and Bankruptcy Board of India (IBBI) report marking a decade of the IBC said ongoing corporate insolvency resolution processes (CIRPs) averaged 713 days as of March 2025, with around 78% exceeding the statutory 270-day timeline. The report identified judicial delays, litigation and multiple proceedings among the key 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 as of March 2025. Average CIRP duration stood at 713 days, more than twice the 330-day outer limit envisaged under the IBC, while cases completed in FY25 took an average of 853 days. The survey also noted that only 30 NCLT benches handle both IBC and Companies Act matters, adding to capacity constraints.

Mint reported on 4 September that shortages of members and infrastructure at India’s insolvency tribunal had come into focus after a five-member special bench hearing Zee founder Subhash Chandra’s personal insolvency case deferred proceedings because no bench was available. The case concerns Chandra’s proposed ₹6.5-crore repayment plan.

About the Author

Krishna Yadav is a Senior Correspondent at Mint, based in New Delhi, and part of the corporate bureau. He joined the newsroom as a trainee in 2023 and quickly grew into his current role. He writes on legal and regulatory developments in corporate India, with a focus on insolvency, taxation, company law, and policy. His reporting includes tracking and breaking key legal stories from the Supreme Court, Delhi High Court, NCLT, and NCLAT.<br><br>With a background in law, Krishna is known for simplifying complex legal developments into clear, accessible stories for readers. His work focuses on trends in corporate law and policy that affect businesses. This ranges from explaining tax disputes—like whether coconut hair oil is edible—to writing on why celebrities are seeking personal rights protection. He closely tracks India’s insolvency system, covering issues such as creditor losses, gaps in the process, and challenges in how the framework works in practice.<br><br>Krishna also tracks developments within law firms—covering hiring trends, how firms help companies navigate global challenges, and how the legal industry is adapting to artificial intelligence. Beyond legal reporting, he has written long-form pieces, including on-ground coverage of the 2024 general elections, capturing the scale and logistics of polling across India.<br><br>Outside work, he enjoys travelling, exploring new places, and reading about geopolitics and history.