Supreme Court Challenges Ministry’s Grip on Company Tribunals

The Supreme Court wants the leaders of two company-law tribunals to list what they need, including land, buildings and staff, within four weeks. In a separate part of Thursday’s hearing, Chief Justice Surya Kant said the Ministry of Corporate Affairs had “completely hijacked” the National Company Law Tribunal. He said it had also hijacked its appeals body, the NCLAT. He called for their presidents to control appointments. ^1,2

That four-week request came as the court examined a case about tribunal vacancies and poor facilities. The presidents must submit plans covering day-to-day needs, and the NCLT must consider placing a deputy or joint registrar at each bench to keep court records. The Attorney General, R. Venkataramani, was asked to urge the Union government to provide basic facilities quickly. The court also asked the government to meet tribunal leaders and the Bar. ^2,7

Those plans matter because the NCLT decides company and insolvency disputes, while the NCLAT hears appeals. Short staffing and poor facilities can slow cases, including insolvency proceedings meant to resolve financial trouble within set time limits. The NCLT has 63 approved member positions, but as of June 30 it had 26 judicial members and 25 technical members, including its president. The Bar said at least 18 benches were holding only half-day sittings. ^2,6

Those half-day sittings come amid a dispute over who appoints the tribunals’ support staff. Contract workers’ lawyer Meenakshi Arora said existing staff could be replaced by a private contractor on November 1 or 2, and argued that six years of work gave them rights. The chief justice proposed bringing in experienced government staff on temporary assignments, then hiring new staff in stages through UPSC or SSC. The presidents’ four-week plans are the next concrete step. ^1,3