A bench of Acting Chief Justice Gita Mittal and Justice C Hari Shankar raised the question after it was informed that after December, only three judicial and two expert members would remain in the tribunal.
"Would you like to wind up the National Green Tribunal?," the bench asked the government, while directing it to file a status report within two weeks.
The matter will now be heard on September 14.
Bansal, who was represented by advocate Sumeer Sodhi, said, "Due to the red-tapism involved in bureaucracy, a fine institution like the NGT is heading towards a premature death."
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The court was also informed that on account of retirement of most of its members, two zonal benches of the NGT would stop functioning by October.
The petition said currently, there were eight judicial members and six expert members in the NGT and with retirements due, after December 9, the number of expert members would come down to two and after February 13, 2018, only three judicial members would be left in the panel.