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NCLT's Efficiency Overhaul: Single Judicial Benches Greenlit for Routine Insolvency Tasks
In a strategic move to combat mounting case backlogs, the Acting President Bachu Venkat Balaram has invoked the proviso to of the . This order empowers across all NCLT benches to tackle a specific class of procedural and uncontested matters under both the Companies Act and the . No traditional petitioner or respondent here—this is pure administrative firepower aimed at streamlining justice.
Backlog Blues: Why NCLT Needed a Solo Act
NCLT benches typically require two members: one judicial and one technical, as per
. But with pendency soaring, the proviso allows the President to designate
for suitable cases. The order cites the
"interest of timely disposal of cases, reduction of pendency, and efficient case management"
as the driving force. As noted in recent reports, this addresses long-standing delays in corporate and insolvency proceedings, freeing up division benches for meatier disputes.
What Gets the Single-Bench Treatment?
The order meticulously lists matters ripe for solo handling, focusing on procedural, urgent, or unopposed applications:
- Early hearing requests
- Orders for completing pleadings and compliance
- in filings
- Unopposed extensions of or liquidation periods (sans complex issues)
- Extensions of prior interim relief
- Uncontested substitutions of IRPs, RPs, liquidators, or parties
- Taking on record progress reports, constitutions, and procedural registry directions
This targets the "low-hanging fruit" of tribunal workload, integrating seamlessly with IBC timelines.
Built-in Safeguards: No Room for Overreach
Smart checks prevent abuse. If any party demands a
, the matter shifts. Contested substantive rights? Off-limits to singles. Only specified classes qualify.
"Final adjudication of contested matters affecting substantive rights shall not be undertaken by a Single Judicial Member,"
the order firmly states. Matters outside the list stay with full benches.
Court's Razor-Sharp Reasoning
Drawing directly from the statutory proviso, the order clarifies that single benches suit
"
."
It distinguishes these from complex or disputed issues requiring dual expertise, ensuring technical members focus on high-stakes calls. No precedents cited— this is fresh empowerment rooted in the Act's own flexibility.
Key Observations
"Whereas, it is considered necessary and expedient, in the interest of timely disposal of cases, reduction of pendency, and efficient case management, to classify certain as a distinct class of cases suitable for adjudication by ."
" are hereby authorised to hear and dispose of the following class of matters under the and the Insolvency and Bankruptcy Code, 2016 as the case may be, subject to the limitations contained herein."
"Provided that: a. If any party requests that the matter be heard by a , then the matter shall be placed before the ."
"This Order shall come into force with immediate effect and shall apply to all Benches of the Tribunal unless otherwise directed."
Instant Rollout, Lasting Ripple Effects
Effective immediately, this applies tribunal-wide unless countermanded. Expect faster processing of routine IBC filings—like RP substitutions or extensions—easing pressure on resolution professionals and creditors. For practitioners, it's a game-changer: file unopposed procedural apps confidently with a single judge. Future cases? Division benches can prioritize substance, potentially slashing overall timelines in India's insolvency ecosystem.
Signed by Registrar Utkarsh Yadav on behalf of the Acting President, this order signals NCLT's proactive pivot toward efficiency without compromising fairness.
