NCLT completely hijacked by Ministry: SC

New Delhi: The Supreme Court on Thursday accused the Ministry of Corporate Affairs (MCA) of having "completely hijacked" the National Company Law Tribunal (NCLT) and its appellate body, the NCLAT, raising concerns over the autonomy of the two judicial institutions.

A bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana called for greater independence in appointments, suggesting that the presidents of the two tribunals be given full control over the process. As an interim measure, the bench proposed bringing in personnel on deputation, followed by phased regular recruitment through the Union Public Service Commission (UPSC) or the Staff Selection Commission (SSC).

"I know how contractors play their hands. They don't care about judicial/technical members. Complete autonomy must be with presidents. They can take UPSC/SSC. The tribunal has been completely hijacked by the Ministry of Corporate Affairs. That is impinging on the autonomy of the institution. That's the problem. The ministry wants to have complete grip; that's most unfortunate," Chief Justice Surya Kant observed orally.

The court was hearing a petition filed by contractual employees working at the NCLT and NCLAT, who fear losing their jobs following the appointment of a private company to provide staff.

Senior advocate Meenakshi Arora, appearing for the employees, urged the court to intervene, arguing that those who had worked for years should not be removed at short notice.

"The contract has been awarded. I have instructions to state, with some degree of responsibility, that in all likelihood, on November 1 or 2, the existing staff will be required to leave and appointments will be made by this independent private company," she told the bench. Arora said many of the employees had served the tribunals for six years and had certain rights despite being hired on contract. She pointed out that contractual appointments through the MCA did not entitle them to benefits such as house rent allowance (HRA) or dearness allowance (DA). She also argued that the NCLT recruitment rules and the relevant advertisement provided for regularisation of employees.

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