The Department-related Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice chaired by Shri Brij Lal, MP, Rajya Sabha, presented its 166^th Report on the Subject ‘Review of Functioning of Tribunal System in the Country’ on   07^th August, 2026 to both the Houses of Parliament. 

            While examining the Subject, the Committee held extensive deliberations with the stakeholders and heard the views of Registrar, Railway Claims Tribunal (RCT) and the Additional Member (Commercial), Railway Board on 11^th June, 2025; Joint Secretary, Department of Legal Affairs, Ministry of Law & Justice, Registrar General, National Green Tribunal (NGT) and Registrar, National Company Law Tribunal (NCLT) on 10^th November, 2025; Joint Secretary, Department of Legal Affairs, Ministry of Law & Justice, and Director, Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on 20^th November, 2025; and Joint Secretary, Department of Legal Affairs, Ministry of Law & Justice, and President, Income Tax Appellate Tribunal (ITAT) on 30^th December, 2025.

            The Report was considered and adopted by the Committee on 05^thAugust, 2026. The Recommendations/Observations made by the Committee in this Report are enclosed. For reference purpose, para nos. of the Report are also mentioned at the end of each recommendation/observation. The entire Report is available on https://sansad.in/rs/committees/18?departmentally-related-standing-committees.

 

RECOMMENDATIONS/OBSERVATIONS IN

166^thREPORT ON THE SUBJECT ‘REVIEW OF FUNCTIONING OF TRIBUNAL SYSTEM IN THE COUNTRY’

Income Tax Appellate Tribunal (ITAT)

 

1. The Committee is of the view that the efficiency of a judicial institution depends not only on the availability of Members but also on the adequacy of registry, administrative and support staff. Vacancies at various levels adversely affect scheduling of hearings, preparation of records, court proceedings, administrative supervision and overall case disposal. The Committee, therefore, recommends that all vacant posts of Members in the Tribunal be filled in a timely and continuous manner so that the institution is able to function at its optimum capacity. The Committee further recommends that the Department of Legal Affairs, in coordination with the Tribunal, SSC and other concerned agencies, accord top priority to fill vacancies in the Registry and supporting cadres, particularly in the posts of Registrar, Deputy Registrar, Assistant Registrar, Senior Private Secretary and Private Secretary.

(Para 2.13)

 

2. The Committee notes the recurring challenge faced by Government organizations in retaining candidates selected against Group 'B' and Group 'C' posts owing to the increasing trend of over-qualified candidates either not joining or leaving shortly after appointment. In this regard, the Committee recommends that the Government should examine the feasibility of maintaining a reserve panel or waiting list of selected candidates, valid for a specified period, to facilitate expeditious filling of vacancies arising from non-joining or early attrition. Such a mechanism would help reduce delays in recruitment and ensure continuity in the functioning of the Tribunal.

(Para 2.14)

 

3. The Committee recommends that periodic manpower assessments be undertaken to evaluate staffing requirements across judicial, registry and support cadres and that vacancies be filled proactively so that administrative constraints do not impede the efficient delivery of justice.

(Para 2.15)

 

4. While the Committee appreciates the Tribunal's sustained efforts in reducing pendency over the long term, the sharp increase in pending cases by 19,275 cases within a period of five months warrants closer examination. The Committee therefore desires that the issue of sharp increase in pendency reported during the current period, may be examined and recommends that the Tribunal undertake a detailed analysis of the factors contributing to this rise, including trends in newly instituted appeals.

(Para 2.20)

 

5. The Committee is of the view that regular monitoring of compliance with such timelines is essential to ensure consistency in adjudication and to prevent accumulation of fresh arrears. The Committee, therefore, recommends that the Tribunal strengthen monitoring mechanisms for adherence to the prescribed performance benchmarks and timelines relating to disposal of appeals and pronouncement of orders. The Committee also recommends that special attention be given to disposal of long-pending and legacy cases, particularly those involving recurring issues of law, so as to promote certainty in tax administration and reduce avoidable litigation.

(Para 2.22)

 

6. While appreciating the substantial progress made by the Tribunal in digitizing its judicial and administrative processes, the Committee takes into account the concerns expressed by the Tribunal regarding ageing hardware, obsolescence of software systems and the increasing need for cyber-security safeguards. Given the sensitive nature of taxpayer information handled by the Tribunal, the Committee emphasizes that data security and digital resilience must remain a priority. The Committee, therefore, recommends that the Department of Legal Affairs provide adequate financial and technical support for periodic upgradation of hardware, software and video-conferencing infrastructure across all benches. The Committee further recommends that regular cyber-security audits, vulnerability assessments and data protection reviews be undertaken periodically to safeguard judicial records and taxpayer information.

(Para 2.27)

 

7. The Committee believes that adequate physical infrastructure is essential for the efficient functioning of a judicial institution. Modern courtrooms, record management facilities, office space, digital infrastructure and appropriate facilities for litigants and Members of the Bar contribute significantly to the quality and efficiency of adjudication. The Committee therefore, recommends that the Department of Legal Affairs accord priority to strengthening the physical infrastructure of the Tribunal across the country. The Committee particularly emphasizes the need for expeditious action towards establishing a permanent and modern headquarters for the Tribunal at Mumbai and completing the ongoing infrastructure projects at Ahmedabad, Kolkata and Guwahati within the stipulated timelines. The Committee further recommends that efforts be intensified to reduce dependence on rented premises by securing suitable Government accommodation or land for benches currently functioning from private buildings.

(Para 2.31)

 

8. The Committee is of the view that specialized tribunals derive their strength not merely from judicial experience but also from the availability of subject-matter expertise. In this context, continuous professional development assumes significance for Members drawn from diverse professional backgrounds. The Committee therefore, recommends that the Tribunal, in coordination with the Department of Legal Affairs and other relevant institutions, strengthen capacity-building initiatives for Members and Registry officials through regular training programmes, workshops and knowledge-sharing exercises. The Committee further recommends that special emphasis be placed on emerging areas of tax jurisprudence, including international taxation, transfer pricing, anti-avoidance measures and the implementation of the Income Tax Act, 2025.

(Para 2.34)

 

9. The Committee recommends that appropriate mechanisms be developed for continuous professional education and specialized orientation programmes for newly appointed Members so as to equip them with the requisite domain expertise in tax law and practice. Further, while making appointments to senior positions within the Tribunal, due consideration may be given to the importance of specialized knowledge and experience in taxation and related fields, consistent with the applicable statutory framework. Such measures would help ensure that the Tribunal remains equipped to effectively adjudicate increasingly complex tax disputes and maintain its longstanding reputation as a premier specialized adjudicatory institution.

(Para 2.35)

 

Railway Claims Tribunal (RCT)

 

10. The Committee is of the considered view that adequate judicial and administrative manpower is indispensable for ensuring timely disposal of claims and efficient functioning of the Tribunal. The Committee, therefore, recommends that vacancies in the posts of Members and supporting staff be filled in a time-bound manner. The Committee also recommends that the process for selection and appointment of Members be initiated well in advance of the anticipated occurrence of vacancies so that appointments are completed before the outgoing Members demit office, thereby ensuring continuity in the functioning of the Tribunal.

(Para 3.8)

 

11. The Committee notes that while all major Benches have recorded a decline in pendency, a substantial proportion of pending cases continues to be concentrated in certain regions. The Committee is of the view that such concentration warrants a closer examination of the underlying causes, including adequacy of infrastructure, manpower availability, workload distribution and other region-specific factors.

(Para 3.12)

 

12. The Committee is of the considered view that sustained and targeted interventions are required in regions accounting for a disproportionately high share of pending cases. The Committee, therefore, recommends that the Ministry of Railways should undertake a comprehensive Region-wise and Bench-wise analysis of pendency trends, identify the factors responsible for concentration of cases in particular regions and formulate a time-bound strategy to address the structural bottlenecks so identified. For this, it should, if need be, establish additional benches in those regions where high case volume, persist.

(Para 3.14)

 

13. The Committee recommends that the performance of various Benches be periodically reviewed and appropriate measures be taken to sustain the momentum achieved in reduction of arrears and improve the overall efficiency of the adjudicatory process.

(Para 3.15)

 

14. In view of continuing pendency at WS stage, the Committee recommends that these indicative timelines be further reduced, with WS ordinarily filed within 45 days and DRM reports completed within 60 days, and that compliance be monitored Bench‑wise through monthly reviews at Zonal and Railway Board levels.

(Para 3.18)

 

15. The Committee was informed that high pendency in Uttar Pradesh, Bihar and Mumbai is linked to dense railway networks, high train frequency, large populations and behavioural factors such as foot‑board travel, boarding/de‑boarding moving trains and trespassing on tracks. While acknowledging the above factors, the Committee recommends that Ministry of Railways, in coordination with RCT, design targeted safety and awareness campaigns in these regions, and periodically review their impact on incidence of accident and claim filing.

(Para 3.19)

 

16. The hybrid and virtual hearing systems have facilitated greater accessibility and enabled advocates and litigants to participate in the proceedings remotely. However, the Committee observes that infrastructural deficiencies and shortage of manpower continue to impede optimum utilization of technology and the full realization of the benefits envisaged under the e-RCT Project.The Committee, therefore, recommends full implementation of hybrid and virtual court systems and strengthening of digital infrastructure across all Benches so as to improve accessibility and reduce inconvenience and logistical burden on litigants, particularly those residing in remote areas.

(Para 3.21)

 

17. The Committee recommends that RCT should introduce a fully digital filing system (e-filing) for claim petitions, provide real time case status tracking through a dedicated portal and mobile application and facilitate virtual hearing for parties residing far from Tribunal Benches. To this end, adequate technical and administrative manpower should be provided and necessary infrastructure be created, so as to facilitate effective implementation of the e-RCT Project and ensure optimum utilization of technology in the functioning of the Tribunal.

(Para 3.22)

 

18. The Committee is of the considered view that financial autonomy constitutes an important prerequisite for strengthening institutional independence and efficient functioning of the Tribunal. The Committee, therefore, recommends that the Ministry of Railways examine the feasibility of providing a separate capital budget for the Railway Claims Tribunal so as to ensure timely availability of funds for infrastructure development, procurement of equipment and maintenance of office premises and to reinforce the institutional credibility and independence of the Tribunal as a quasi-judicial body.

(Para 3.25)

 

19. The Committee appreciates the initiatives undertaken by the Tribunal to enhance access to justice and improve the efficiency of its functioning. The organization of Lok Adalats for amicable settlement of disputes and the implementation of a Legal Aid Scheme are commendable measures to ensure that litigants belonging to economically weaker sections are not denied access to justice on account of financial constraints. The ongoing e-RCT Project, envisaging the transition of the Tribunal to a paperless environment through the introduction of e-filing, online case information systems and digital payment gateways, is also a welcome initiative aimed at expediting the disposal of cases and reducing the time taken for adjudication.

(Para 3.28)

 

20. The Committee is of the considered view that such initiatives have significantly contributed towards expeditious disposal of cases and timely grant of relief to victims and their families. The Committee believes that these practices may serve as useful models for improving efficiency and effective utilization of resources.

(Para 3.29)

 

21. The Committee is of the opinion that such an imbalance in bargaining power, coupled with the reluctance of railway officials to settle genuine claims, may adversely affect access to justice and impede timely resolution of deserving cases. The Committee, therefore, recommends that appropriate safeguards be introduced to ensure fairness, transparency and voluntariness in settlement proceedings, so as to encourage timely resolution of disputes in deserving cases. The Committee also emphasises the need for strict adherence to the prescribed limit on adjournments and recommends that avoidable adjournments be firmly discouraged in order to prevent delays and ensure expeditious disposal of cases.

(Para 3.31)

 

22. The Committee is of the considered view that a structured and standardized compensation framework would facilitate expeditious disbursement of compensation, ensure equitable treatment of victims, and reduce avoidable litigation arising from disputed or ad hoc settlements. The Committee, therefore, recommends that the Ministry of Railways examine the feasibility of introducing such a framework, particularly in fatal accident cases, on the lines of the civil aviation sector, so as to ensure timely relief to victims. The Committee further recommends that the claim procedure be simplified through the adoption of a standardized claim form, minimization of documentation where records are already available with the Railways, and provision of assistance desks to support claimant families at the time of filing.

(Para 3.33)

 

23. The Committee is of the considered view that access to RCT depends significantly on public awareness of its role and procedures, and that the absence of a dedicated outreach mechanism, limited language accessibility, and uneven availability of legal aid facilitation may make it difficult for claimants, especially those without legal support, to approach the Tribunal. The Committee, therefore, recommends that concerted efforts be made to enhance public awareness regarding the functioning of the Tribunal through multilingual dissemination of information and establishment of facilitation mechanisms at all Tribunal Benches. Such steps would improve accessibility and enable individuals to seek timely and effective redressal.

(Para 3.35)

 

24. The Committee recommends that the Ministry of Railways examine the feasibility of introducing a structured pre-litigation mechanism with a view to facilitate early resolution of disputes and reduce avoidable litigation.  The Committee further recommends formulation of a comprehensive litigation policy to guide decision-making in respect of settlement of claims and minimize unnecessary litigation.

(Para 3.37)

 

25. The Committee recommends that a universal filing system on the lines of a "Zero FIR" model may be adopted to improve accessibility and facilitate filing of claims by litigants. Such a mechanism has the potential to enhance access to justice and reduce inconvenience to litigants. It would enable claimants to institute proceedings at any location without being constrained by territorial jurisdiction and would ensure seamless transfer of cases to the appropriate Bench having jurisdiction.

(Para 3.39)

 

26. The Committee recommends that RCT should create a digital interface between the Railway Claim Tribunal and Indian Railways for quick verification of passenger records and accident reports. For speedy disposal of cases, the RCT should utilise the technology and AI for scheduling and cause list preparation, as well as automated notifications through SMS and email regarding hearings. Orders may also be generated with the assistance of AI.

(Para 3.40)

 

Telecom Disputes Settlement and Appellate Tribunal (TDSAT)

 

27. The Committee notes that the sanctioned strength of TDSAT has remained at 52 posts since its establishment, even when the disputes involve highly specialized technical issues requiring domain-specific expertise. The Committee therefore, feels that there is an urgent need to strengthen the Tribunal’s human resources and technical capabilities. The Committee is of the view that the existing strength of Members and supporting staff may not be adequate to effectively address the expanded jurisdiction and growing caseload of the Tribunal. The Committee, therefore, recommends that the Department should undertake a review of the Tribunal's sanctioned strength vis-à-vis its expanded mandate and enhance the sanctioned strength through the appointment of additional Members, Officers and technical experts, as required. The Department should also implement regular capacity-building and training programmes commensurate with the Tribunal's expanded mandate to ensure efficient and timely adjudication of disputes across its diverse areas of jurisdiction.

(Para 4.7)

 

28. The Committee is of the considered view that timely adjudication of disputes is essential for ensuring regulatory certainty, promoting investor confidence and safeguarding the interests of stakeholders in the sectors under the jurisdiction of TDSAT. The Committee, therefore, recommends that TDSAT should formulate and implement a comprehensive, time-bound action plan for reducing the pendency of cases, with special emphasis on long-pending matters, by prioritizing their disposal, prescribing realistic timelines, and undertaking periodic monitoring and review of pendency.

(Para 4.9)

 

29. The Committee is of the view that absence of a permanent office complex affects administrative efficiency, limits opportunities for future expansion and results in recurring expenditure on rented accommodation. The Committee, therefore, recommends that the Government should provide adequate budgetary support for establishment of a permanent office complex equipped with modern courtrooms, digital infrastructure and other support facilities necessary for efficient discharge of the Tribunal's functions.

(Para 4.11)

 

30. The Committee is of the view that consumer courts often lack sector-specific technical expertise and are burdened with substantial pendency, which may affect timely and effective resolution of telecom-related grievances. The Committee, therefore, recommends establishment of an independent Telecom Ombudsman and creation of a robust multi-tier grievance redressal framework within the telecom sector. The Committee further recommends that the Government examine the feasibility of extending TDSAT's jurisdiction to certain categories of specialized consumer disputes.

(Para 4.14)

 

31. The Committee notes that technological advancements and digital transformation have significantly altered the nature of disputes coming before the Tribunal. The Committee appreciates that TDSAT has adopted virtual and hybrid hearing mechanisms, its ongoing efforts to operationalize an e-filing system, and the establishment of a Mediation Centre to facilitate amicable resolution of disputes. The Committee believes that effective utilization of digital technologies is essential for improving accessibility, transparency and efficiency in adjudicatory processes.

(Para 4.16)

 

32. The Committee feels that increasing caseloads and the expanding geographical footprint of stakeholders requires greater reliance on technology-enabled dispute resolution mechanisms. The Committee therefore, is of the view that robust digital infrastructure would not only improve case management and procedural efficiency but also enable stakeholders across the country, particularly those located outside major urban centres, to access the Tribunal's services more conveniently and effectively.

(Para 4.17)

 

33. The Committee recommends strengthening digital adjudication systems through expansion of e-filing facilities, virtual hearings, digital record management and integrated case-management systems. The Committee further recommends development of user-friendly digital platforms for filing, monitoring and tracking complaints and disputes to enhance accessibility, transparency and timely disposal of cases.

(Para 4.18)

 

34. The Committee strongly feels that strengthening public awareness and accessibility is essential for ensuring an effective Aadhaar grievance redressal framework. The Committee, therefore, recommends that the Government, in coordination with the UIDAI and TDSAT, undertake sustained awareness and outreach initiatives through digital platforms, mass media campaigns, Common Service Centres (CSCs), and other appropriate channels to educate citizens regarding Aadhaar grievance redressal mechanisms, available appellate remedies and procedures for approaching the competent authorities. The Committee further recommends that user-friendly guidance materials and online resources be made readily accessible to enable citizens to effectively avail themselves of the grievance redressal framework, particularly in rural and remote areas where awareness of appellate remedies may be limited.

(Para 4.22)

 

National Green Tribunal (NGT)

 

35. The Committee emphasizes that expeditious filling of vacancies of Judicial Members and Expert Members is of critical importance. The Committee while noting that the Tribunal is functioning below the minimum statutory member strength recommends that Government accord the highest priority to complete the ongoing appointment process, so as to enable the Tribunal to function in conformity with the legislative framework of the NGT Act, 2010.

(Para 5.11)

 

36. The Committee notes that NGT is substantially dependent on contractual manpower for its day-to-day functioning which leads to slow disposal of cases thereby increasing pendency. The Committee, therefore, recommends that the staffing structure of the Tribunal be reviewed comprehensively expeditiously to reduce excessive dependence on contractual manpower for ensuring stable Bench-wise availability of regular administrative, judicial, registry and technical support personnel.

(Para 5.14)

 

37. The Committee notes that although 166 staff posts are sanctioned across NGT, only 142 are presently in position, with gaps at several levels and uneven Bench-wise distribution, including zero in-position Registrar posts at Chennai bench and shortfall in key posts such as Section Officers, Private Secretaries and Assistant (Judicial) staff (Annexure-I). The Committee is of the view that this persistent under‑staffing, coupled with an over-reliance on multi-tasking and ad hoc arrangements, undermines efficient case management, registry functioning and compliance monitoring, and exacerbates delays and pendency across benches. The Committee, therefore, recommends that the administrative Ministry, in consultation with the Tribunal, undertake a time-bound Bench-wise staffing audit and fill all sanctioned posts in Group ‘A’, ‘B’ and ‘C’ cadres, prioritizing critical court-management and registry positions at zonal benches where vacancies are most acute.

(Para 5.15)

38. The Committee believes that the prolonged pendency in such matters may weaken deterrence, reduce the practical impact of remedial directions, and permit environmental harm to continue or worsen over time, particularly where interim arrangements and partial compliance are allowed to persist without time-bound final resolution. The Committee, therefore, recommends that a separate mechanism be evolved for identification and tracking of cases pending for more than three years, including a categorization of such matters based on the stage of adjudication in order to help distinguish unavoidable delay from remediable delay and permit more focused intervention.

(Para 5.24)

 

39. The Committee observed that despite digital systems, many litigants still face delays and difficulty in getting timely relief in various cases. At the same time, it recognizes that the Tribunal has made real progress in online filing, virtual hearings and wider access for citizens and stakeholders, and considers that such facilities can help in faster disposal of cases and better monitoring of compliance with NGT orders.

(Para 5.27)

 

40. The Tribunal has informed that one of the key challenges it is facing is the lack of dedicated computer section and related technical posts. The Committee finds it unusual that, at a time when the Government is vigorously promoting the digitalization, an institution as important as the National Green Tribunal continues to function without a dedicated Computer/IT Section and the required technical posts. The Committee, therefore, recommends that a dedicated Computer/IT Section, with appropriate technical posts and supporting staff, be established and operationalized at all the Benches of the Tribunal to ensure reliable digital infrastructure and effective use of technology in its functioning.

(Para 5.28)

 

41. While appreciating the steps already taken on e‑filing, hybrid hearings and case information systems, the Committee recommends that digital tools be further used to improve listing, case tracking, transparency and access for litigants from remote and environmentally vulnerable areas, so that the benefits such as quicker listing, fewer adjournments and better monitoring are fully realized in practice.

(Para 5.29)

42. The Committee recommends that official website of the Tribunal should incorporate a dashboard displaying Bench-wise status of disposal of cases as well as other relevant figures for the Tribunal as a whole so that the public and policymakers can easily assess the efficiency and performance of the NGT and each of its benches.

(Para 5.30)

 

43. The Committee welcomed these efforts of the Tribunal. However, it emphasizes that such programmes must translate into more effective enforcement and timely remedial action on the ground. Particular importance may be accorded to issues pertaining to areas such as air pollution, illegal mining, river pollution, invasive species and urban ecological imbalance.

(Para 5.33)

 

44. The Committee is of the view that awareness‑building and capacity development undertaken by the Tribunal are valuable.  However, adjudicatory processes, follow‑up mechanisms and enforcement needs to be strengthened, so that the expectations generated by these initiatives are matched by visible improvements in environmental outcomes.

(Para 5.34)

 

45. The Committee recommends that NGT, in coordination with the Ministry of Environment, Forest and Climate Change and State authorities, should organize structured and sustained awareness programmes to educate the public about its mandate and functioning, particularly with regard to the types of environmental matters within its jurisdiction and the procedures for seeking redressal.

(Para 5.35)

 

46. The Committee expresses concern about the reliance of the Tribunal on outside agencies and civil decree procedure to get its orders implemented. The Committee is also constrained to note that the effectiveness of the Tribunal’s work is heavily dependent on implementing authorities that enforce the orders of the Tribunal, thereby highlighting inherent weaknesses of the existing enforcement framework.

(Para 5.37)

 

47. The Committee feels that compliance with the Tribunal’s orders by the concerned authorities should be monitored more closely. It recommends stronger follow-up by the Tribunal and the Ministry through regular action-taken reports, effective use of joint Committees, clear fixing of responsibility, and better ways to ensure that NGT orders are implemented promptly.

(Para 5.38)

 

48. The Committee notes the gap between public expectations and actual interventions of the Tribunal in some high‑visibility environmental issues such as Delhi’s recurring air‑quality crisis, illegal mining and long‑standing pollution hotspots. It considers that institutional responses in such matters need to be timely, visible and commensurate with their gravity, while respecting statutory limits and the primacy of the Supreme Court where it is seized of particular issues. In this relation, the Committee recommends that, NGT may adopt clearer internal practices to identify and prioritise matters for suo motu consideration, especially in relation to such repeated environmental issues.

(Para 5.41)

 

National Company Law Tribunal (NCLT)

 

49. The Committee notes that more than 95 percent of the Tribunal's workforce is presently engaged on a contractual basis and frequent transfers of deputationists along with high attrition among contractual personnel adversely affects continuity in administration, resulting in loss of institutional memory and impeding the development of domain expertise. The Committee is of the considered view that the effectiveness of a specialized adjudicatory institution depends not only upon the availability of adequate Judicial and Technical Members but also upon a stable, experienced and professionally managed administrative workforce. The Committee, therefore, recommends that vacancies in the posts of Judicial and Technical Members may be filled expeditiously and that the requirement of additional Benches and Members be reviewed periodically in light of the growing caseload. The Committee further recommends that the Ministry of Corporate Affairs undertake a comprehensive review of the National Company Law Tribunal Recruitment Rules, 2020 with a view to address bottlenecks in recruitment, facilitating greater avenues for direct recruitment and ensuring timely filling of vacancies across all cadres.

(Para 6.9)

 

50. The Committee recommends that the staffing requirements of the Tribunal be reassessed and adequate permanent posts be created to reduce dependence on contractual and deputation-based personnel. A stable and permanent workforce is essential for preserving institutional memory, strengthening domain expertise, ensuring continuity in administration and enhancing the overall efficiency and effectiveness of the Tribunal.

(Para 6.10)

 

51. The Committee observes that the data also reflects that the statutory timelines envisaged under the IBC are not being met in a substantial number of cases, particularly where delays occur in the filing of Resolution Plan applications. As a result, the pendency of insolvency cases continues to remain significant, highlighting the need for expeditious disposal of CIRP matters in order to achieve the objectives of the Code.

(Para 6.17)

 

52. The Committee notes that non-adherence to the statutory timelines prescribed under the Insolvency and Bankruptcy Code in a significant number of Corporate Insolvency Resolution Process cases. The Committee therefore feels that delays in resolution adversely affect creditor confidence, erode asset value and undermine the objective of a time-bound insolvency resolution framework. While noting the constraints highlighted by the NCLT, the Committee believes that timely resolution of insolvency proceedings requires coordinated efforts by all stakeholders, including the Ministry of Corporate Affairs, the Insolvency and Bankruptcy Board of India (IBBI), Resolution Professionals and the NCLT.

(Para 6.18)

 

53. The Committee notes that shortages of courtrooms and staff, high attrition among contractual personnel, infrastructural constraints and delays in the upgradation of the e-Courts system have adversely affected the Tribunal's capacity to dispose of cases in a timely manner. The Committee, therefore, recommends that the Ministry of Corporate Affairs, in consultation with the NCLT, IBBI and other stakeholders, take targeted measures to address the procedural and institutional bottlenecks identified by the Tribunal, including delays in serving of notices, filing of replies, disposal of interlocutory applications and strengthening of judicial, administrative and digital infrastructure. The Committee also recommends that the NCLT adopt robust case management practices to ensure greater adherence to the statutory timelines, prioritize the disposal of long-pending CIRP matters, and periodically review cases that have exceeded the prescribed timelines so as to identify the underlying causes of delay and take appropriate corrective measures.

(Para 6.20)

 

54. The Committee is of the considered view that steadily expanding insolvency jurisdiction of the NCLT should not dilute its equally important responsibilities under the Companies Act, 2013, including matters relating to mergers and amalgamations, corporate governance, and protection of stakeholder interests. The Committee further notes that insolvency matters require specialized and time-bound adjudication and now account for more than half of the Tribunal's total caseload. The Committee, therefore, recommends that the Ministry of Corporate Affairs examine the feasibility of establishing dedicated IBC Benches/verticals within the NCLT, with adequate judicial and technical members, registry support and infrastructure. Such a specialized mechanism would facilitate expeditious disposal of insolvency matters while ensuring that the Tribunal's company law jurisdiction receives equal attention.

(Para 6.24)

 

55. The Committee is pleased to note that NCLT has emerged as one of the leading tribunals in adopting digital processes and hybrid modes of hearing, thereby enhancing accessibility and efficiency in adjudication. While appreciating the progress achieved, the Committee notes the concerns expressed by the Tribunal regarding limitations of the existing IT infrastructure and the need for time-bound implementation of the proposed NCLT 2.0 project.

(Para 6.28)

 

56. The Committee recommends that digital infrastructure of the Tribunal be strengthened on priority basis to enable expeditious implementation of the proposed NCLT 2.0 project. The Ministry of Corporate Affairs should ensure adequate and predictable budgetary support to the Tribunal for implementation of the digital initiatives envisaged under the project. The Committee further recommends that the rollout of NCLT 2.0 be accompanied by a robust disaster recovery mechanism to safeguard case records and system continuity, and adequate deployment of dedicated technical manpower to operate and maintain the upgraded platform.

(Para 6.29)

 

57. The Committee is of the considered view that adequate and modern judicial infrastructure is essential for the efficient functioning of the Tribunal and for ensuring timely delivery of justice. The Committee, therefore, recommends that the Ministry of Corporate Affairs, in consultation with the National Company Law Tribunal, undertake a comprehensive assessment of the infrastructure requirements of all NCLT Benches and take expeditious steps to provide dedicated court complexes and modern facilities in conformity with the standards prescribed under the National Court Management System. The Committee further recommends that infrastructure upgradation of existing Benches be accorded priority so as to enhance the efficiency, accessibility and overall functioning of the Tribunal.

(Para 6.31)

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