he Supreme Court of India has underscored the urgent necessity of addressing the acute shortage of members in the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT). The Court has further directed that the Real Estate Regulatory Authority (RERA) across various States must be adequately staffed to ensure the effective functioning of the regulatory framework envisaged under the Real Estate (Regulation and Development) Act, 2016.
⚖️ Key Observations of the Court
- Severe Vacancy Crisis in NCLT/NCLAT:
The Apex Court observed that despite the exponential increase in the caseload following the enactment of the Insolvency and Bankruptcy Code (IBC), a substantial number of posts of Judicial and Technical Members in the NCLT and NCLAT continue to remain vacant. This has resulted in delays in the adjudication of corporate insolvency matters and has adversely impacted the timely resolution process envisaged under the IBC. - Directive to the Union Government:
Expressing serious concern, the Court directed the Union Government to fill up all existing vacancies in NCLT and NCLAT on a war footing, and to ensure that the tribunals are adequately manned to handle the growing volume and complexity of cases. - Staffing Deficiencies in RERA Authorities:
The Court also took note of the manpower and infrastructural inadequacies in various State RERA authorities. It stressed that the effective enforcement of real estate laws and timely redressal of homebuyers’ grievances require that RERA bodies be provided with sufficient human resources, technical support, and administrative infrastructure. - Impact on Justice Delivery Mechanism:
The Bench highlighted that the lack of adequate staffing in these adjudicatory bodies not only leads to mounting backlogs and procedural delays but also undermines public confidence in the justice delivery system.
📌 Conclusion
The Supreme Court’s directions reiterate the pressing need for institutional strengthening of quasi-judicial bodies tasked with handling complex corporate and real estate disputes. Timely appointments and capacity augmentation of the NCLT, NCLAT, and RERA are indispensable for ensuring the efficient administration of justice and maintaining the credibility of India’s regulatory framework.
