The Supreme Court on Thursday said the Union ministry of corporate affairs (MoCA) had “completely hijacked” the administration of the National Company Law Tribunal (NCLT), warning that the ministry’s bid to exercise control over the tribunal was undermining its autonomy and functioning.
The court stressed that the NCLT president must be allowed to administer the institution independently, without the ministry seeking a “complete grip” over its functioning.
A lawyer appearing for contractual employees told the bench that the ministry had awarded a contract on October 6 to a foreign company operating in India to deploy administrative staff, including deputy registrars, assistant registrars and stenographers. The arrangement could displace existing contractual employees from November 1 or 2, the court was informed. Of the 320 sanctioned regular administrative posts at the NCLT, only 67 have been filled, leaving 253 vacant. The court was also informed that 16 posts among judicial and technical members remained vacant.
The bench, also comprising justices Joymalya Bagchi and V Mohana, was hearing a suo motu case on infrastructure deficiencies, staff shortages and administrative difficulties affecting the NCLT and the National Company Law Appellate Tribunal (NCLAT) . The court’s remarks came amid concerns over the ministry’s decision to outsource recruitment of administrative personnel at the NCLT to a private company, raising questions about who should exercise control over appointments in a judicial institution. Questioning whether employees appointed without a competitive recruitment process could claim a right to regularisation or continued service, the court also referred to allegations of misconduct by some contractual staff, including instances in which judicial records were allegedly removed and criminal cases registered. The staffing controversy has unfolded against the backdrop of a severe manpower crunch at the tribunal.
