Supreme Court Intervenes: NCLT's Delayed Approvals Under Scrutiny

The Supreme Court has expressed concern over the delays in approving resolution plans by the National Company Law Tribunal (NCLT). It highlights a shortage of manpower and infrastructure as key issues. With 383 applications pending, action is being taken to expedite and improve the process nationwide.

The Supreme Court has taken decisive action regarding the lengthy delays in the approval of resolution plans by the National Company Law Tribunal (NCLT) benches. The apex court termed the situation 'grim' and expressed the necessity for immediate intervention to address this pressing issue.

Resolution plans, proposals under the Insolvency and Bankruptcy Code (IBC) for reviving distressed companies, are facing significant hurdles due to delays exacerbated by manpower and infrastructure shortages. Justice J B Pardiwala and Justice K V Viswanathan emphasized the urgent need for resolution to avoid undermining the very purpose of the IBC.

The court directed that the matter be reviewed by Chief Justice of India Surya Kant for further proceedings. With 383 applications awaiting resolution, the urgency for reform is clear, opening a new chapter of legal oversight and accountability in the process.