Bar body moves Allahabad High Court against new filing framework for NCLT Allahabad, flags delays

The Company Law Tribunal Bar Association has approached the Allahabad High Court, challenging the arbitrary marking of defects and systemic delays in the listing of fresh matters before the National Company Law Tribunal (NCLT).

The petition raised concerns over differential treatment in the scrutiny process of filings across different NCLT benches, resulting in procedural delays and uncertainty for litigants and advocates practising before the tribunal.

The plea arose from a notice issued on February 27 by the Registrar of the NCLT Principal Bench.

The notice had laid down a framework for how filings made before different NCLT benches are to be checked at the threshold stage.

The petition noted that while certain benches like Jaipur were permitted to carry out local scrutiny of filings at their own level, the Allahabad Bench was placed under a different system where scrutiny was handled differently through the Principal Bench mechanism.

The effect, according to the plea, is that filings from Allahabad are not processed on the same footing as those benches which have been allowed to undertake local scrutiny.

"The impugned notice is silent on the reason for such differential treatment and does not disclose any objective criterion, reason or transitional necessity justifying why Jaipur is permitted local scrutiny while Allahabad is not. Furthermore, the impugned notice has been issued by the Registrar of NCLT, Principal Bench without mention any provision in exercise of which the said notice has been issued," stated the plea.

The petition argued that this disparity has had a direct impact on the functioning of the NCLT Allahabad Bench. It submitted that filings are frequently returned on technical grounds, leading to repeated rounds of correction and refiling.

The plea further stated that this has resulted in systemic delays at the threshold stage itself, before matters are even numbered or listed for hearing.

On the practical difficulties faced by litigants and lawyers, the NCLT Bar Association noted that procedural bottlenecks at the scrutiny stage have become routine. They observed that defects are often raised in a fragmented manner even after earlier objections have been complied with.

"The impugned arrangement has caused severe hardship to advocates and litigants before the NCLT Allahabad Bench. The matters remain pending at the scrutiny stage for long periods, causing delay in registration, numbering and listing. In several instances, objections are being raised repeatedly and piecemeal, after earlier defects have already been cured, thereby forcing repeated re-filing and repeated follow-up," explained the plea.

The petition further argued that such procedural conduct is not merely administrative inefficiency but has real consequences for litigants, particularly in time-sensitive company law and insolvency-related matters.

"Such repeated defect-marking has caused unnecessary harassment, expense and delay to litigants, and has adversely affected urgent and time sensitive matters," it was submitted.

Additionally, the petition contended that the Registrar, being an administrative authority, cannot unilaterally alter or introduce procedural frameworks governing scrutiny across benches without statutory backing.

The NCLT Bar Association also contended that the present checking mechanism lacks consistency and predictability, making it difficult for practitioners to ensure smooth compliance with filing requirements. It argued that the system, instead of making the case processing efficient, has become overly burdensome due to repeated procedural objections.