Supreme Court Slams MCA Over NCLT Administration

The Supreme Court expressed serious concerns over the administration of the National Company Law Tribunal (NCLT), stating that the Ministry of Corporate Affairs (MCA) had taken control of the institution in a manner that undermined its autonomy.

The Court's observations came amid concerns over staff shortages, inadequate infrastructure, and administrative hurdles affecting tribunal benches across the country. A Bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V Mohana made the remarks while hearing a suo motu case concerning the functioning of the NCLT.

The Court questioned the Ministry's decision to outsource the recruitment of administrative personnel to a private company, which could lead to the displacement of existing contractual employees. It was informed that only 67 of the NCLT's 320 regular administrative posts had been filled, leaving 253 vacant positions, and 16 vacancies existed among judicial and technical members.

Senior advocate Sanjiv Sen highlighted the poor condition of the tribunal's principal bench in Delhi, stating that multiple floors had been shut due to deteriorating infrastructure and courts were functioning at half strength. The Bench asked the Presidents of the NCLT and the National Company Law Appellate Tribunal (NCLAT) to submit comprehensive proposals addressing infrastructure, staffing, and administrative requirements within four weeks.

The Centre was urged to provide essential facilities at the earliest. According to the Court, the MCA's actions had raised concerns over the autonomy of the NCLT, with the Court stating that the 'Ministry wants complete grip' over the institution.