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Crisis: Urges Urgent Action on Vacancies, Infrastructure, and Staffing
has delivered a scathing critique of the 's handling of the , calling for immediate remedial measures to address chronic vacancies, crumbling infrastructure, and staffing crises. In an interview marking the tenth anniversary of the ), Sen warned that government inaction is undermining the very tribunal system designed to expedite corporate disputes and .
With an extensive practice spanning company law, insolvency, taxation, and arbitration, Sen has appeared in landmark cases including , , and . His observations carry weight as the system enters its second decade, facing mounting criticism over delays that threaten to erode the 's transformative impact.
Infrastructure Woes Plague Principal Bench
Sen singled out the
's location as emblematic of deeper neglect.
"The infrastructure is deeply unsatisfactory. The
is situated in a high-security area next to the
. Every lawyer must obtain an entry pass. Why should lawyers require passes to enter a tribunal?"
He described courtrooms as small and frequently overcrowded, with malfunctioning air-conditioning and leakages that force proceedings to halt.
The tribunal's physical fragmentation adds to the chaos. Some courtrooms are housed in one building, others elsewhere, with government ministries occupying parts of the premises. Sen called for a dedicated complex with proper access, adequate courtrooms, and a Bar room.
"There should be a dedicated complex housing all the
courtrooms,"
he insisted, highlighting the pressure on members who sometimes hold morning and afternoon courts due to insufficient benches.
Vacancies and Staffing Crisis
Despite some appointments this year, more than 15 judicial and technical member positions remain vacant across the
. The
)
has been without a Chairperson since
.
"There is no reason why a successor should not be appointed immediately after the previous Chairperson demits office,"
Sen remarked.
The staffing situation is equally dire. Over 80% of staff are temporary, lacking job security. Sen noted instances where the staff went on strike because salaries were not paid on time. Such instability hampers efficient case management and contributes to the mounting backlog.
Fuels Delays
Beyond institutional failures, Sen identified former promoters and unsuccessful resolution applicants as major sources of delay.
"They flood the
with unnecessary and
. Suspended directors are sometimes given too much indulgence, while unsuccessful applicants continue filing applications after losing a bid."
The
mandates a maximum outer limit of 330 days for resolution, but in practice, cases take two to three times longer due to continuous
.
Judicial interference in the Committee of Creditors' () further compounds delays. Sen cited the 's decision in which clarifies that decisions are not . Yet courts and tribunals continue to interfere, a tendency Sen attributes to "." He warned that such interference "should not be permitted" because it undermines the designed.
Government's Lackadaisical Approach
Sen was blunt about the government's role.
"I would say government has been a little lackadaisical and rather than proactive. It must take a more proactive approach towards the infrastructural problems confronting the
and the legislative changes required under the
and
."
He urged reconsideration of the four-year tenure for judicial members, arguing it discourages experienced practising lawyers from joining.
"Four years may be adequate for a retired High Court or district court judge. But a longer tenure is required if the government wants to attract good practising lawyers."
Despite these shortcomings, Sen acknowledged the
's revolutionary impact. Before the Code, recovery could take years or decades.
"The
has given the fear of God to companies. If you enter into a contract, you must fulfil it. If you do not, a creditor can initiate insolvency and the existing promoters may lose control."
He described the shift from the old
, where a broken company was dismantled, to the
's
, where a new promoter can revive the enterprise.
The AI Hallucination Warning
Sen also addressed the recent order in
, which was set aside for relying on
. He called the incident a "red flag."
"Artificial intelligence is both a boon and a bane. It drastically reduces preparation time... but when used without verification, it produces precisely these kinds of results."
He stressed that every AI-identified judgment must be checked and rechecked, and that the bench bears ultimate responsibility.
"No tribunal or court should rely on a judgment without verifying its existence and whether it contains the proposition attributed to it."
Left Behind
Sen endorsed the
's view that the
does not provide sufficient protection to
, including
.
"The
tilts heavily in favour of
.
... do not even have a seat on the Committee of Creditors."
He noted that unless a
voluntarily provides something,
often receive nothing. He called for at least some representation on the
,
"even without voting rights, they should have a voice and be able to observe the conduct of the process."
A Call for Renewed Commitment
Sen concluded with a plea for the government to treat the
's implementation with the same urgency as its enactment.
"Better implementation would do wonders for India's economy and ease of doing business."
As the
system marks a decade, Sen's critique serves as a stark reminder that institutional neglect risks squandering the
's potential. Without urgent action on vacancies, infrastructure, staffing, and legislative amendments, the tribunal system may continue to struggle under the weight of its own promise.
