NCLT, NCLAT hijacked by corporate affairs ministry: SC
The Supreme Court has criticized the Ministry of Corporate Affairs for "completely hijacking" the National Company Law Tribunal (NCLT) and the appellate NCLAT. The bench, consisting of Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana, made the remarks while hearing petitions regarding the challenges faced by NCLT, such as poor infrastructure, lack of support staff, and high vacancy rates.
The tribunal resolved Rs 55,000 crore worth of resolution plans in the financial year 2024-25. The court expressed concern over the ministry's desire to exert complete control over the tribunals, stating that it impinges on their autonomy. The bench has asked the presidents of NCLT and NCLAT for detailed proposals on infrastructure and staffing within four weeks.
Additionally, the court has urged the dismissal of contractual employees, who have been harassing judicial members and have caused damage to the tribunals. The court emphasized that only the presidents, not the contractual staff, should have the authority to make recruitment decisions.
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