Supreme Court: NCLT completely hijacked by Ministry of Corporate Affairs

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Issuing notice in the matter, he said: “This has been completely hijacked by the MCA (Ministry of Corporate Affairs). That's the problem. Ministry wants to have complete grip; that's most unfortunate.”THE Supreme Court on Thursday said the Ministry of Corporate Affairs has “completely hijacked” staff appointments at the National Company Law Tribunal (NCLT).Stressing the need to preserve the autonomy of the NCLT president over appointments, a three-judge bench presided over by Chief Justice of India Surya Kant, suggested deputation of employees as an interim measure, followed by regular recruitment through the Union Public Service Commission or the Staff Selection Commission.“The ministry wants to have complete grip…And that’s what’s most unfortunate,” CJI Kant said.The bench, also comprising Justices Joymalya Bagchi and V Mohana, was hearing a plea related to the appointment of staff members working with the NCLT’s judicial members.Senior Advocate Meenakshi Arora, representing contractual employees working in the NCLT, said the entire recruitment, including the ones attached to judicial members, has been outsourced to a private entity and there is high chance that those on contract will be asked to leave next month.“They have worked for six years. They do have certain rights, even if they are on a contractual basis. When appointed on contract by the MCA, they are not entitled to HRA or DA. That is because you do not want a full-time employee,” she said.Arora submitted that NCLT recruitment rules provide for regularisation and the advertisement also says so.Story continues below this ad“If that is provided for in the recruitment rules and the advertisement, why should they be thrown out lock, stock and barrel? That would be extremely arbitrary and violate Articles 14 and 16. Let there be no termination without the approval of the president,” she said.The bench said it did not want to entertain the plea at the instance of employees who had a personal interest in the matter but later said the power to appoint staff must remain with the NCLT president and the issue required consideration in this light. CJI Kant said: “The entire power of appointment must be with the (NCLT) president only.”Arora raised the question of rights of the contractual employees and urged the court to direct that they be not terminated without the approval of the National Company Law Appellate Tribunal president.But the court declined to pass any such order. The CJI said, “We will not tie down the (NCLT) president. You are also backdoor entrants. I know how contractors play their hands. They don’t care about judicial/technical members.” Stressing that “complete autonomy must be with presidents”, the CJI said, the new recruitment can be through UPSC/SSC.Story continues below this adIssuing notice in the matter, he said: “This has been completely hijacked by the MCA (Ministry of Corporate Affairs). That’s the problem. Ministry wants to have complete grip; that’s most unfortunate.”