New Delhi: India’s commercial tribunals, established to reduce the burden on courts and boost investor confidence, are facing serious efficiency challenges. According to a recent report, major commercial forums—including the National Company Law Tribunal (NCLT), Debt Recovery Tribunal (DRT), and Customs, Excise and Service Tax Appellate Tribunal (CESTAT)—have a staggering 356,000 pending cases, with approximately ₹24.72 lakh crore locked in disputes, equivalent to 7.48% of India’s 2024-25 GDP.
The report highlights a striking paradox: tribunals, created to resolve specific commercial disputes efficiently, are themselves struggling with systemic delays. For instance, the statutory timeline for resolving a case at the NCLT is 330 days, yet the average resolution time is 752 days. Key factors contributing to delays include over-reliance on contractual staff and a shortage of specialized judicial expertise. At NCLT, 88% of staff are contractual, while at NCLAT, contractual employees account for 84.9%, with limited expertise in company and insolvency law.
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The DRT is facing 215,000 pending cases, with inadequate tribunals in 48 states forcing litigants to travel long distances, causing further delays. Although the legal framework mandates resolution within 180 days, over 85% of cases exceed this timeline, undermining confidence in debt recovery processes. Similarly, tax tribunals—including the Income Tax Appellate Tribunal (ITAT), customs, and excise appellate forums (CESTAT)—are grappling with similar operational bottlenecks.
Experts point to deep-rooted administrative and structural shortcomings as the primary challenge. Vacant positions, insufficient benches, non-functional tribunals, and inadequate infrastructure continue to impair effectiveness. Additionally, oversight by multiple ministries creates uncertainty for litigants, while overlapping jurisdiction with civil courts and underinvestment in rapidly growing sectors such as data, telecom, and energy add to operational pressures.
The report recommends a series of reforms to enhance efficiency:
- Amend laws to remove jurisdictional barriers
- Curtail forum-shopping and ensure uniformity
- Increase the number of benches and fill vacancies promptly
- Enforce strict timelines for case resolution
- Implement a uniform case management system across all tribunals
- Enhance transparency through real-time dashboards and data tracking
- Establish a National Judicial Commission for administrative and budgetary oversight
- Introduce a judicial performance fee to accelerate case disposal
Experts conclude that without robust administrative reforms, infrastructure modernization, and investment in judicial expertise, India’s commercial tribunals will struggle to achieve their core objectives: enhancing investor confidence and delivering timely justice.
