Backlog in India's Commercial Tribunals
India's commercial tribunals are facing a significant backlog, involving 356,000 cases valued at ₹24.72 trillion, as reported by DAKSH in their "State of Tribunals 2025" report. This backlog equates to approximately 7.48% of India's GDP for 2024-25.
Challenges Faced by Commercial Tribunals
- Originally designed as specialized quasi-judicial bodies, the tribunals aimed for faster adjudication.
- Ineffectiveness has increased due to legislative interventions, vacancies, procedural gaps, and questions of independence.
- The National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) average 752 days to resolve cases, exceeding the 330-day statutory limit.
- These tribunals handle over 18,000 cases and depend heavily on contractual staff (88% at NCLT, 84.9% at NCLAT).
Specific Tribunal Backlogs
- Debt Recovery Tribunals (DRTs) have over 215,000 pending cases, with more than 86% exceeding the six-month resolution period.
- 18 states lack a DRT Bench.
- Tax tribunals face a backlog of over 73,000 cases, involving ₹1.96 trillion.
- Goods and Services Tax Appellate Tribunal is expected to manage cases worth ₹2.9 trillion in GST disputes.
Sectoral and Structural Issues
- Sectoral tribunals, such as those for securities, telecom, and electricity, are expanding mandates but lack investment in capacity.
- Common issues include high vacancies, single-member benches, and a significant proportion of temporary staff.
Concerns from the Judiciary
The Supreme Court highlighted the reluctance of retired high court judges to join tribunals due to inadequate treatment and lack of infrastructure, including poor amenities and support systems.
Report Findings
The report emphasizes the absence of basic infrastructure and systematic data on pendency, disposal rates, and case timelines in most commercial tribunals.
