BJD MP urges Centre to strengthen NCLT/NCLAT infrastructure, capacity

BJD MP Sasmit Patra wrote to the Minister of Corporate Affairs, flagging poor infrastructure at NCLT/NCLAT. Citing power cuts and floods, he urged for permanent infrastructure, better facilities, and increased staffing for these key institutions.

Biju Janata Dal (BJD) Rajya Sabha MP Sasmit Patra on Monday has written 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 (NCLT) and the National Company Law Appellate Tribunal (NCLAT). In his letter, Patra highlighted the growing importance of the NCLT/NCLAT 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.

Infrastructural Deficiencies Highlighted

Referring to reports of a power outage earlier today at the NCLT Principal Bench at the CGO Complex, Lodhi Road, New Delhi, which allegedly disrupted court proceedings due to inadequate backup support, Dr. Patra stated that such incidents underscore the need for a broader institutional review of tribunal infrastructure across the country. He further pointed out that during the monsoon last year, courtrooms at the CGO Complex were reportedly flooded, compelling courts to function in shared courtrooms and half-day shifts.

The letter also notes that Judicial and Technical Members continue to discharge responsibilities from constrained spaces within temporary and rented premises, while the NCLAT continues to function from rented MTNL premises.

Despite these infrastructural and administrative constraints, Dr. Patra noted that the NCLT 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.

Urgent Measures Proposed

In his communication, Patra urged the Ministry of Corporate Affairs to consider urgent measures including the development of permanent and modern infrastructure for NCLT/NCLAT benches, ensuring uninterrupted courtroom operations and power backup facilities, augmentation of bench strength and permanent staffing, improved institutional support for Judicial and Technical Members; and review of 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 NCLT and its Members deserve institutional support and recognition while functioning under extraordinarily difficult circumstances," he stated. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)