NCLT, NCLAT 'hijacked' by corporate ministry: SC

The Supreme Court criticized the Ministry of Corporate Affairs for overstepping and undermining the autonomy of the National Company Law Tribunals (NCLT) and National Company Law Appellate Tribunal (NCLAT). The court's bench, consisting of Chief Justice Surya Kant and justices Joymalya Bagchi and V Mohana, expressed concern over the appointments process at the tribunals.

They emphasized that full autonomy should lie with the presidents of the tribunals, rather than the ministry encroaching upon their authority. The court stated, "You (contractual employees) are also backdoor entrants. I know how contractors play their hands. They don't care about judicial/technical members..." The lower court should take the lead in selecting staff for the tribunals through a phased approach, considering options like the Union Public Service Commission and Staff Selection Commission.

It also cautioned against outsourcing tribunal staff recruitment to a private company, as it could lead to the displacement of existing contractual employees and harassment of judicial members. The court ordered both NCLT and NCLAT presidents to submit detailed proposals for improving the tribunals' infrastructure and staffing.