Politics1 min read

NCLT, NCLAT 'hijacked' by corporate ministry: SC

By · Published by Everything Blog

In short

The court stepped in during a petition challenging the government's decision to outsource administrative hiring to a private foreign company operating in India. Refusing to protect current contractual workers whom it termed backdoor entrants, the bench directed the disbandment of the private recruitment contractor. Staffing authority must remain with tribunal leadership, potentially supported by public agencies like the UPSC and SSC. Furthermore, the tribunal presidents have been instructed to submit proposals for necessary land, buildings, and personnel to remedy grim infrastructure deficits.

Key points

  • Tribunal presidents must hold exclusive authority over the appointment of administrative…: Tribunal presidents must hold exclusive authority over the appointment of administrative staff to preserve institutional autonomy.
  • The central government was instructed by the court to rapidly supply basic amenities and…: The central government was instructed by the court to rapidly supply basic amenities and solve grim infrastructure shortages.
  • Future staffing solutions should involve official recruitment channels such as the Union…: Future staffing solutions should involve official recruitment channels such as the Union Public Service Commission and Staff Selection Commission.

Sources checked by our analysis pipeline: 1

Calling for full autonomy for the NCLT and National Company Law Appellate Tribunal (NCLAT) presidents over staff appointments, a bench comprising Chief Justice Surya Kant, justices Joymalya Bagchi and V Mohana said the ministry appeared determined to exercise complete control over the tribunal.

"The ministry wants to have complete grip over the institution. And that's what's most unfortunate," the court said.

Emphasising that the entire power and autonomy of appointment of the staff of the tribunals must be with NCLT's president, the CJI said, "You (contractual employees) are also backdoor entrants. I know how contractors play their hands. They don't care about judicial/technical members... Complete autonomy must be with the presidents. 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," adding that the government can also consider the Union Public Service Commission and Staff Selection Commission for selecting staff for the tribunals.

While informing the SC about how tribunal staff recruitment has been outsourced to a private company, the petitioner said the arrangement could result…

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