MCA invites applications for three posts of Judicial Members, three posts of Technical Members in NCLT

KR Srivats Updated - November 18, 2024 at 12:07 PM.

Last date for submitting online applications is December 29 

Corporate Affairs Ministry (MCA) has invited online applications for the three posts of Judicial Members and three posts of Technical Members in National Company Law Tribunal (NCLT).

The portal for submitting online applications has opened from November 18 and the last date for submitting online applications is December 29, MCA has said.

Every member shall hold office for a period of five years from the date on which he/she enters his/her office, but would be eligible for re-appointment for a further period of five years, according to MCA. The maximum age limit for each NCLT member is sixty-five years.

Finance Minister Nirmala Sitharaman had in this year’s budget announced a slew of proposals to improve insolvency and debt recovery processes with measures including enhancing the efficiency of NCLTs.

The reforms aim to expedite insolvency resolutions, strengthen debt recovery tribunals, and establish additional tribunals to handle cases exclusively under the Companies Act. 

Strengthening NCLT’s capacity and timely member recruitment is seen to be vital for ensuring efficient dispute resolution and upholding India’s reputation as a business-friendly economy.

NCLT, which is India’s key institution for resolving corporate insolvency and disputes, is grappling with a significant increase in workload exacerbated by persistent vacancies in its benches. 

With the rapid rise in cases under the Insolvency and Bankruptcy Code (IBC), mergers and acquisitions, and other corporate disputes, the tribunal is under mounting pressure. 

As of 2024, several benches are operating below full strength due to delays in judicial and technical member appointments, hampering its efficiency.

The growing caseload reflects both the success of IBC in channelling corporate disputes and the evolving complexities of insolvency matters. However, pending cases often lead to prolonged resolution timelines, diminishing stakeholder confidence. 

According to industry estimates, some cases have been delayed beyond the 330-day limit prescribed by the IBC, adding to concerns about judicial delays.

The government has acknowledged these challenges and initiated efforts to streamline appointments and enhance tribunal infrastructure. Digitisation of records and virtual hearings are seen to have provided some respite, but experts argue that sustained solutions—such as timely member recruitment and additional benches—are critical.

Published on November 18, 2024 06:37

This is a Premium article available exclusively to our subscribers.

Subscribe now to and get well-researched and unbiased insights on the Stock market, Economy, Commodities and more...

You have reached your free article limit.

Subscribe now to and get well-researched and unbiased insights on the Stock market, Economy, Commodities and more...

You have reached your free article limit.
Subscribe now to and get well-researched and unbiased insights on the Stock market, Economy, Commodities and more...

TheHindu Businessline operates by its editorial values to provide you quality journalism.

This is your last free article.