Supreme Court flags Ministry of Corporate Affairs' control over NCLT administration, orders staffing and infrastructure fixes

Key facts

• The Supreme Court, hearing a suo motu case on NCLT administration, observed that the Ministry of Corporate Affairs (MCA) had 'hijacked' the tribunal, undermining its autonomy.
• The Bench comprised Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V Mohana.
• The MCA had awarded a contract on October 6 to a foreign company operating in India to supply administrative personnel, including deputy registrars, assistant registrars and stenographers, which could displace existing contractual employees from November 1 or 2.
• The court declined interim protection to the employees and held that the entire power of appointment must rest with the NCLT president.
• Only 67 of the NCLT's 320 sanctioned regular administrative posts were filled, leaving 253 vacancies, and 16 posts of judicial and technical members were also vacant.
• Senior advocate Sanjiv Sen, for the NCLT Bar Association, said the principal bench in Delhi had two floors shut down and all courts functioning at half strength.
• The Bench asked the presidents of the NCLT and NCLAT to submit proposals on infrastructure, staffing and administrative requirements within four weeks.
• The court suggested appointing experienced government officials on deputation initially, followed by phased recruitment, and issued notice on the petition challenging outsourced recruitment.