Water Seepage Forces Closure Of NCLT Courtrooms, Bar Association Moves MCA

Akhya Pandey

On 3rd September 2025 three courtrooms of the National Company Law Tribunal (NCLT), New Delhi were declared unsafe and shut down this week. An inspection by the Central Public Works Department (CPWD) found that persistent water seepage had damaged the ceilings of Courtrooms IV, V and VI on the eighth floor of the CGO Complex, creating the risk of collapse and fire hazards. Acting on the report, the court administration closed the courtrooms with immediate effect.

Since only the sixth and seventh floors were available on 4th September 2025, the NCLT has been forced to hold just half-day sittings from this month. Lawyers appearing before the tribunal say this arrangement has badly disrupted hearings and left it struggling to handle its heavy case load.

The NCLT Bar Association has taken up the matter with the Ministry of Corporate Affairs (MCA), seeking urgent intervention. In a letter to MCA Secretary Deepti Gaur Mukerjee, Association President Senior Advocate U.K. Chaudhary and Secretary-General Saurabh Kalia said the situation had brought the Tribunal’s work to “a near standstill.” They warned that insolvency and company law cases, which are often time-bound, cannot afford prolonged delays caused by curtailed hearings.

The Bar has also drawn attention to the long-standing infrastructure problems at the Tribunal. Even before the closure, Courtroom VI had been operating from Courtroom V due to space constraints. Lawyers have repeatedly complained about the absence of basic facilities such as a bar room, canteen, photocopying services and adequate registry space.

The Association has further reminded the authorities that in 2018 the Delhi High Court had directed that the first floor of the CGO Complex be handed over to the NCLT after renovation. That project was never completed, and the Tribunal continues to function in inadequate and unsafe premises.

Copies of the Bar’s representation have also been sent to the Chief Justice of India, the Finance and Corporate Affairs Minister, NCLT President Justice Ramalingam Sudhakar and senior MCA officials. A resolution passed by the Bar on 3rd September states that if the government does not act quickly, the Association will be left with no option but to explore further measures to protect the interests of litigants and restore normal functioning.

The episode has once again brought into sharp focus the fragile state of judicial infrastructure in the country. For the NCLT, which handles critical corporate disputes and insolvency proceedings, the lack of proper courtrooms is not just an inconvenience—it directly impacts companies, creditors and the wider economy.

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