News Desk: The Supreme Court of India has raised serious concerns over the functioning of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT), alleging that the Ministry of Corporate Affairs has exercised excessive control over their administration. During a hearing on Thursday, the court orally remarked that the institutions had been "completely hijacked" by the ministry, raising questions about their independence and autonomy.
A bench comprising Chief Justice Surya Kant, Justice Joymalya Bagchi and Justice V. Mohana made the observations while hearing a petition filed by contractual employees working in the NCLT and NCLAT. The employees have approached the court over concerns that their services could be terminated and replaced through appointments made by a private company.
Chief Justice Surya Kant emphasised that the presidents of both tribunals should have complete autonomy over administrative matters, particularly appointments. He also expressed reservations about the practice of employing staff on a contractual basis for institutions that perform important judicial and quasi-judicial functions.
"I know how contractors play their hands. They don't care about judicial/technical members. Complete autonomy must be with presidents," the Chief Justice observed. He further suggested that the ministry's control was affecting the institutional independence of the tribunals.
Representing the contractual employees, senior advocate Meenakshi Arora argued that several employees had been working with the tribunals for nearly six years and should not be removed without proper consideration. She informed the bench that the existing staff could be asked to leave as early as November 1 or 2, with a private company potentially taking over the recruitment process.
Arora also argued that the employees had certain rights despite being appointed on a contractual basis. According to her, they were not receiving benefits such as House Rent Allowance (HRA) and Dearness Allowance (DA). She pointed out that the NCLT recruitment rules and the relevant advertisement contained provisions for regularisation.
The advocate urged the court to ensure that no existing employee was terminated without the approval of the tribunal's president. She argued that sudden removal could raise questions under Articles 14 and 16 of the Constitution, which guarantee equality before the law and equality of opportunity in public employment.
The Chief Justice, however, questioned the effectiveness of contractual appointments and shared concerns about incidents involving contractual employees. He also called for greater administrative independence for the judicial bodies.
As an interim arrangement, the bench suggested bringing experienced personnel from government departments on deputation. It further proposed that the NCLT and NCLAT undertake regular recruitment in phases with assistance from the Union Public Service Commission (UPSC) or the Staff Selection Commission (SSC).
The court indicated that both short-term and long-term solutions were necessary to address the administrative concerns. It subsequently issued notice on the petition, taking into account the larger institutional interests involved.
The matter has brought renewed attention to the independence, staffing structure and administrative functioning of India's company law tribunals.
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