Supreme Court Justice S. K. Gautam, in a Thursday hearing, slammed the Ministry of Corporate Affairs for "completely hijacking" the National Company Law Tribunal (NCLT) and its appellate arm, the NCLAT, after the ministry allegedly interfered in the appointment of 63 judicial and technical members and in the tribunal’s infrastructure.
The Ministry of Corporate Affairs, in a statement released the following day, insisted that its involvement was strictly administrative, limited to logistical support for the appointment process and the management of staff such as deputy registrars, court officers, stenographers and multi‑tasking assistants.
In October 2019, the central government had transferred the authority to the NCLT to safeguard its independent functioning, a move the ministry says has been misinterpreted by the Supreme Court.
The Court’s complaints were prompted by reports of dilapidated buildings, chronic staff shortages and unfilled vacancies that have stalled the tribunal’s handling of corporate law and insolvency cases, according to an industry report issued last month.
"The hearings are delayed by weeks because the tribunal lacks basic support staff," said a senior NCLT employee who asked to remain anonymous, adding that the delay has cost companies millions in legal fees.
The Supreme Court is poised to issue a directive on the NCLT’s independent functioning within the next week, while the Ministry may face additional scrutiny over its role in the tribunal’s appointments and infrastructure.