The Supreme Court said the MCA had “completely hijacked” NCLT administration, with CJI Surya Kant stressing the need to protect the tribunal’s autonomy in appointments.
The Supreme Court on Thursday raised serious concerns about the functioning of the National Company Law Tribunal (NCLT), observing that its administration had been entirely taken over by the Ministry of Corporate Affairs (MCA). The observation was made by a bench comprising Chief Justice of India (CJI) Surya Kant, Justice Joymalya Bagchi, and Justice V Mohana while hearing a case related to the appointment of staff working with judicial members of the NCLT.
CJI Surya Kant stated that the ministry wants to have complete grip over the institution. He called it “most unfortunate.”
Emphasising the need to safeguard the tribunal’s independence, the CJI reportedly said the NCLT President must have full authority over appointments and could use recruitment bodies such as the Union Public Service Commission (UPSC) or the Staff Selection Commission (SSC).
“We will not tie down the President. you are also backdoor entrants. I know how contractors play their hands. They don’t care about judicial/technical members. Complete autonomy must be with President. They can take UPSC/SSC. This has been completely hijacked by MCA. That’s the problem. Ministry wants to have complete grip – that’s most unfortunate. We are issuing notice on larger interest – how to ensure…,” the CJI remarked, as reported by Live Law.
Senior Advocate Meenakshi Arora appeared in the matter. She told the apex court that the entire recruitment process, including the hiring of staff for judicial members, had been outsourced to a private entity, the media outlet reported. Arora expressed concern that employees who had served at the tribunal for nearly eight years could be removed as early as November 1 or 2.
The advocate further submitted that the staff would effectively be treated as private employees despite carrying out duties linked to a judicial institution. She argued that such an arrangement could undermine the independent functioning of the judiciary.
Initially, CJI Surya Kant questioned whether the plea should be entertained at the request of employees with a personal stake in the matter. However, the bench indicated that it would consider the issue from a broader institutional perspective, particularly if the NCLT President expressed concerns over the arrangement, Live Law reported.
“We will not entertain this on behalf of employees who have personal interest in this. We will consider if NCLT President points out,” the CJI remarked. He further added that the hearing on the matter would be held only after the report was received.
Justice Bagchi observed that although the recruitment process could be outsourced, the employment relationship should remain directly between the staff and the tribunal.
