Justice Pankaj Mithal of the Supreme Court of India has raised an important question about the efficacy of tribunalisation in alleviating the workload of constitutional courts. During a recent event marking the 10th anniversary of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT), Justice Mithal observed the persistent trend of company law and insolvency appeals reaching the Supreme Court from the NCLAT.
Speaking at an event organized by the NCLT and NCLAT Bar Association at the Constitution Club of India, New Delhi, Justice Mithal highlighted that originally, such cases would be handled by High Courts before progressing to the Supreme Court. Now, with the establishment of the NCLT and NCLAT, the expectation was for these specialized tribunals to resolve disputes more efficiently. However, he noted, the ultimate destination for these appeals often remains unchanged—the Supreme Court.
Justice Mithal clarified that his observations were not intended as criticism of the tribunals but rather as a structural assessment of their role. He emphasized that the intention behind creating such tribunals was to reduce the burden on constitutional courts and expedite the resolution of specialized disputes. Yet, in practice, the Supreme Court continues to see a significant influx of cases from these forums.
The event was attended by several dignitaries, including Union Law Minister Arjun Ram Meghwal, former Chief Justice of India Justice BR Gavai, NCLAT Chairperson Justice Ashok Bhushan, former Supreme Court Justice Rajesh Bindal, and NCLT President Justice Anupinder Singh Grewal.
Justice Mithal posed a critical institutional question: Has the tribunal system genuinely reduced litigation burdens, or merely altered the path through which litigation travels? While acknowledging the pivotal role NCLT and NCLAT have played in shaping India’s insolvency and company law jurisprudence, he suggested that the milestone of ten years should encourage not just celebration but also introspection.
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He pointed out several ongoing challenges faced by the tribunals, including a backlog of over 18,000 cases, chronic vacancies, and inadequate infrastructure. These issues hinder the tribunals’ ability to function efficiently, as they are expected to deliver timely outcomes without sufficient resources. He also noted that over 80% of the workforce in both NCLT and NCLAT is contractual, leading to disruptions in operational continuity.
Moreover, Justice Mithal mentioned that asset recovery in insolvency cases often prioritizes immediate liquidation value over the long-term enterprise value, constraining effective resolutions.
Former CJI Gavai and other notable figures at the event lauded the contribution of the tribunals in transforming corporate dispute resolution in India. Justice Ashok Bhushan described the establishment of NCLT and NCLAT as a watershed moment in the country’s corporate legal landscape but acknowledged that adhering to timelines under the Insolvency and Bankruptcy Code (IBC) remains a significant challenge.
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Union Law Minister Meghwal praised the tribunals for shifting India’s insolvency philosophy from liquidation to resolution and emphasized their role in enhancing legal certainty in the commercial environment. He highlighted their importance in achieving the national goal of making India a developed country by 2047.
NCLT President Justice Grewal reflected on the tribunals’ foundational role in developing insolvency jurisprudence in India, acknowledging delays but asserting that adjudication should not be merely a mechanical process.
Other speakers, including Senior Advocate and NCLT/NCLAT Bar Association President Virender Ganda, also contributed to the discussion, emphasizing the tribunals’ achievements and the need for ongoing improvements.
