The Supreme Court criticized the Ministry of Corporate Affairs for encroaching on the independence of the NCLT and NCLAT, which resolved Rs 55,000 crore in plans during the 2024-25 financial year. The bench exposed critical administrative issues, including falling roofs and over 250 vacant positions hobbling tribunal operations. The court firmly opposed using contractual personnel sourced via external firms after files were previously stolen in Bombay. Chief Justice Surya Kant mandated that permanent hiring must proceed through formal public commissions under the tribunal presidents' supervision.
Key points
Recruitment for the tribunals must be handled by official public commissions rather than…: Recruitment for the tribunals must be handled by official public commissions rather than private contractual arrangements.
Contractual hiring practices compromised judicial operations after temporary workers absc…: Contractual hiring practices compromised judicial operations after temporary workers absconded with original Bombay case files.
Collapsing infrastructure and critical staff shortages threaten the basic operational cap…: Collapsing infrastructure and critical staff shortages threaten the basic operational capacity of the quasi-judicial financial bodies.
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SC slammed the corporate affairs ministry for "completely hijacking" NCLT and NCLAT, citing infrastructure failures, large vacancies and contractual hiring that undermine the tribunals' autonomy.
New Delhi: In an outburst sure to embarrass the govt, Supreme Court Thursday slammed the ministry of corporate affairs for “completely hijacking” the two most important quasi-judicial financial adjudicatory bodies – National Company Law Tribunal (NCLT) and the appellate NCLAT.The stinging remarks came from a bench of Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana while hearing petitioners who have been complaining for the last few months about the shoddy infrastructure, lack of support staff and large vacancies hampering the work in NCLT, which in the financial year 2024-25 had approved resolution plans worth Rs 55,000 crore. The tribunal adjudicates corporate civil disputes, company law violations and insolvency proceedings.“The system, the tribunals, we are compelled to observe, has been completely hijacked by the ministry of corporate affairs. That is the problem. And that is impinging on the autonomy of these institutions. These are the things we must look into. The ministry wants…
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