Company law tribunal appoints 24 new members to tackle member shortages

The newly appointed members will serve for five years or until they reach the age of 65

The Ministry of Corporate Affairs has appointed 24 new judicial and technical members to the National Company Law Tribunal (NCLT), a key body handling corporate disputes and insolvency cases. This move addresses the persistent shortage of members that has been affecting the tribunal’s efficiency.

 

The newly appointed members, announced through a notification issued by the ministry, will serve for five years or until they reach the age of 65. Among the appointees are Justice Jyotsna Sharma as a judicial member and Hariharan Neelakanta Iyer as a technical member.

 

Out of the 24 new members, 11 are judicial and 13 are technical, with five women included in the appointments. Notable additions include Nilesh Sharma as a judicial member and Reena Sinha Puri as a technical member.

 

 

Shortages in NCLT and NCLAT

The appointments come following concerns raised by the Supreme Court in November 2024 regarding the significant vacancies in both the NCLT and the National Company Law Appellate Tribunal (NCLAT). A bench led by former Chief Justice of India DY Chandrachud emphasised the lack of members and inadequate infrastructure were impeding the insolvency resolution process. During a hearing involving the liquidation of Jet Airways, the court noted that the NCLT was operating with only 43 members, despite being authorised for 63 members.

 

The Supreme Court emphasised that the limited number of tribunal members and insufficient support facilities were causing operational challenges, with many sessions restricted to a few days per week or limited hours per day. The court urged the government to take prompt action to fill the vacancies and improve the infrastructure.

 

The shortage of members has contributed to delays in insolvency resolutions, the court said. According to the Insolvency and Bankruptcy Board of India, the average time for insolvency resolutions increased to 716 days in the financial year 2023-24, up from 654 days in the previous year. The new appointments are expected to alleviate these delays and improve the overall efficiency of the NCLT.