1. Every application or petition presented before the Tribunal and every appeal filed before the Appellate Tribunal shall be dealt with and disposed of by it as expeditiously as possible and every endeavour shall be made by the Tribunal or the Appellate Tribunal, as the case may be, for the disposal of such application or petition or appeal within three months from the date of its presentation before the Tribunal or the filing of the appeal before the Appellate Tribunal.
2. Where any application or petition or appeal is not disposed of within the period specified in sub-section (1 ), the Tribunal or, as the case may be, the Appellate Tribunal, shall record the reasons for not disposing of the application or petition or the appeal, as the case may be, within the period so specified; and the President or the Chairperson, as the case may be, may, after taking into account the reasons so recorded, extend the period referred to in sub-section (1 ) by such period not exceeding ninety days as he may consider necessary.
Legal Commentary & Landmark Judgments: Section 422
Section 422 enacts a mandatory statutory mandate requiring the NCLT and NCLAT to dispose of applications, petitions, and appeals within three months from presentation.
Section 422 reflects Parliament's policy to eradicate the multi-year delays that historically plagued company law boards and civil courts. While NCLT benches face massive caseload pressures that frequently exceed the three-month timeline, Section 422 is routinely cited in High Court writ petitions (under Article 227) to seek directions commanding NCLT benches to deliver reserved judgments or expedite urgent hearings.