The Supreme Court, on May 24, 2026, accused the Ministry of Corporate Affairs of hijacking the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT), demanding they submit infrastructure and staffing plans within four weeks.
Chief Justice Surya Kant, joined by Justices Joymalya Bagchi and V Mohana, blasted the ministry’s “complete hijack” of the tribunals, saying it undermines their autonomy and efficiency.
The NCLT, which handled corporate civil disputes and approved resolution plans worth ₹55,000 crore in FY 2024‑25, has 320 regular posts, 253 of which remain vacant, a fact highlighted by senior advocate Sanjiv Sen.
Senior advocate Meenakshi Arora warned that contractual recruitment, allegedly outsourced to a foreign firm, could erode the tribunals’ integrity. The bench rejected contractual hiring, insisting such posts must go through the Union Public Service Commission or Staff Selection Commission.
CJI Kant also cited incidents in Bombay where contractual employees allegedly absconded with original files, underscoring the risk of backdoor entry. The court’s order obliges the tribunals’ presidents to act with full autonomy over staffing while addressing the pressing infrastructure deficiencies.
The ministries must now comply with the Supreme Court’s directives, and the tribunals’ presidents are expected to submit their proposals by June 21, 2026.