Litigants and economy will suffer: Madras High Court seeks fresh status report on functioning of NCLT Chennai

The Madras High Court on Tuesday sought a fresh, up-to-date status report from the Central government detailing the working of the Chennai Bench of the National Company Law Tribunal (NCLT) [CA V. Venkata Siva Kumar vs. Union of India]..A Bench of Acting Chief Justice Munishwar Nath Bhandari and Justice PD Audikesavalu noted that litigants and the economy were suffering for want of speedy adjudication as a result of the Bench's limited functioning..The Court was hearing a petition moved by CA Venkata Siva Kumar who sought the Court's intervention to make the NCLT in Chennai functional. During the proceedings, the Division Bench was informed by the petitioner, appearing in-person, that a certain technical member has being looking at matters in Benches of the NCLT in Chennai as well as Kochi. Therefore, the Bench effectively worked for three hours in a day, resulting in reduced productivity.Taken aback by this claim, the High Court directed the Central government to file an affidavit detailing whether one technical member was working at both the Tribunals. If this was found to be the case, an explanation was sought from the government..The Court insisted that a fresh status report be filed explaining the status of vacancies in the Tribunal since the Court was last intimated through a status report in September 2021 and was not aware of subsequent developments.“Recently, that has been taken heavily. Tribunals have been constituted, but largely are not operational. You go to any forum, vacancies remain. The litigant has to try and the matters are not disposed of,” the Court observed.The matter will be next heard on December 6..The petitioner sought for better monitoring of the NCLT, stating that petitions have remained pending for long periods. It was brought to the Court’s attention that the Ministry of Corporate Affairs had decided to have a third Bench of the NCLT in 2018, but has failed to operationalise it.“Several days were lost when the Benches never presided over and counsels were made to wait the entire day. I am the liquidator for one company, and I filed 530 days back. Nothing has happened. Whereas, the object of that is just 90 days,” he submitted.