Chief Justice Surya Kant didn't mince words on Thursday. The Supreme Court bench, including Justices Joymalya Bagchi and V Mohana, declared that the Ministry of Corporate Affairs (MCA) has "completely hijacked" the National Company Law Tribunal (NCLT) and its appellate body, NCLAT. The Court linked this takeover directly to the erosion of judicial independence, stating the ministry's desire for "complete grip" is "most unfortunate."
The comments came during a hearing on a petition filed by contractual employees facing sudden termination. Senior advocate Meenakshi Arora argued that staff who have worked for six years cannot be discarded overnight by an independent private company taking over operations on November 1 or 2. She highlighted that these workers, denied HRA and DA, are entitled to regularization under existing NCLT recruitment rules and advertisements.
CJI Kant agreed that contractual hiring is flawed, citing a specific incident in Bombay where such staff allegedly fled with original reports, forcing FIR registrations. He warned that these employees often harass judicial and technical members, showing a complete disregard for the institution's integrity. "Let them also go. Let this company also be disbanded," he said, insisting that only the presidents of NCLT and NCLAT should hold appointment powers.
To fix the systemic rot, the Court proposed a two-pronged approach. Immediate deputation of experienced government officials will serve as an interim measure. Long-term, the tribunals must conduct phased, independent recruitment through the UPSC or SSC. The bench issued notice on the plea, citing larger public interest, effectively freezing the current administrative chaos until a compliant framework is established.