The Supreme Court on Thursday raised serious concerns over the administration of the National Company Law Tribunal (NCLT), alleging that the Ministry of Corporate Affairs (MCA) had taken control of the institution in a manner that undermined its autonomy. The observations came amid concerns over staff shortages, inadequate infrastructure and administrative hurdles affecting tribunal benches across the country.
According to Bar and Bench, a Bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V Mohana made the remarks while hearing a suo motu case concerning the functioning of the NCLT. The Court also questioned the Ministry’s decision to outsource the recruitment of administrative personnel to a private company.
Court questions outsourced recruitment
The Bench was informed that a contract awarded on October 6 could lead to the displacement of existing contractual employees from November 1 or 2. However, the Court declined to grant them interim protection, questioning whether they could claim continued employment without undergoing a competitive recruitment process.
The Court was told that only 67 of the NCLT’s 320 regular administrative posts had been filled, leaving 253 vacant positions. Additionally, 16 vacancies existed among judicial and technical members.
Infrastructure concerns at NCLT
Senior advocate Sanjiv Sen, representing the NCLT Bar Association, highlighted the poor condition of the tribunal’s principal bench in Delhi, stating that multiple floors had been shut due to deteriorating infrastructure and courts were functioning at half strength.
The Bench asked the Presidents of the NCLT and the National Company Law Appellate Tribunal (NCLAT) to submit comprehensive proposals addressing infrastructure, staffing and administrative requirements within four weeks. It also urged the Centre to provide essential facilities at the earliest.
