Explainer: 'Where Are the Members?'—NCLT Faces Staffing Crunch Amid Bhushan Steel Resolution Review

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Explainer: 'Where Are the Members?'—NCLT Faces Staffing Crunch Amid Bhushan Steel Resolution Review

Business 16 May 2025 02:15 PM IST Live Mint

New Delhi, May 16, 2025 — The National Company Law Tribunal (NCLT) is grappling with a significant staffing shortage as it undertakes the complex task of reviewing the Bhushan Power & Steel Ltd (BPSL) insolvency case. This challenge comes in the wake of the Supreme Court's decision to nullify JSW Steel's ₹19,700 crore resolution plan and order the liquidation of BPSL .

What Prompted the NCLT's Concern?

During a recent hearing, NCLT President Justice Ramalingam Sudhakar openly questioned the tribunal's capacity to handle such intricate cases, asking, "Where are the members?" He emphasized the need for a special bench to adjudicate the interlocutory applications (IAs) related to the BPSL case, highlighting the tribunal's understaffing issues .

Background: The Supreme Court's Verdict

On May 2, 2025, the Supreme Court set aside the resolution plan submitted by JSW Steel for the acquisition of BPSL, citing non-compliance with the Insolvency and Bankruptcy Code (IBC). The Court directed the initiation of liquidation proceedings for BPSL, a move that has significant implications for creditors and stakeholders involved in the insolvency process .

Implications of the Staffing Shortage

Delayed Proceedings: The lack of sufficient members in the NCLT could lead to delays in the adjudication of the BPSL case, affecting the timely resolution of insolvency proceedings.
Increased Workload: Existing members may face an increased workload, potentially impacting the quality and efficiency of judgments.
Systemic Challenges: The staffing issue underscores broader systemic challenges within the NCLT, raising concerns about its capacity to handle complex insolvency cases effectively.

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