New Delhi, October 30, 2026: The Supreme Court has strongly criticised the Ministry of Corporate Affairs over its role in the administration of the National Company Law Tribunal, saying the tribunal had been “completely hijacked” and that excessive ministry control was affecting its institutional autonomy.
Bench Flags Loss of Autonomy
A three-judge Bench led by Chief Justice of India Surya Kant, along with Justices Joymalya Bagchi and V Mohana, said the NCLT president should be allowed to administer the tribunal independently.
The Court said the ministry appeared to want a “complete grip” over the institution.
Staffing Dispute Triggered Remarks
The comments came during proceedings concerning severe staff shortages, poor infrastructure and a connected challenge involving the outsourcing of NCLT recruitment.
The Court was told that the ministry had contracted a private company to supply administrative personnel such as deputy registrars, assistant registrars and stenographers.
Appointment Powers Should Rest With NCLT President
The Bench indicated that the power to appoint staff should primarily remain with the NCLT president rather than being controlled through external contractors.
It suggested that regular recruitment could eventually take place through bodies such as the UPSC or Staff Selection Commission.
Court Refuses Blanket Protection for Contract Staff
Existing contractual employees had sought protection against possible termination.
The Court declined to grant blanket continuation merely because some employees had served for several years, while also questioning whether workers recruited without a competitive selection process could claim regularisation as a right.
253 Administrative Posts Vacant
The staffing crisis is significant.
The Court was informed that only 67 of the NCLT’s 320 sanctioned regular administrative posts are currently filled, leaving 253 vacancies. Another 16 judicial and technical member positions were also reported vacant.
Delhi Principal Bench Faces Infrastructure Problems
The NCLT Bar Association also raised concerns over deteriorating infrastructure at the tribunal’s principal bench in Delhi.
Senior counsel appearing for the association said parts of the building had been shut and courtrooms were functioning with serious constraints.
Four-Week Deadline for Proposals
The Supreme Court asked the presidents of the NCLT and NCLAT to submit comprehensive proposals within four weeks.
These proposals are expected to cover staffing, buildings, supporting personnel and administrative arrangements needed for the tribunals to function effectively.
Court Seeks Greater Institutional Independence
The larger concern before the Court is whether tribunals that perform important quasi-judicial functions can remain independent if their staffing and administration are controlled too closely by an executive ministry.
The case will now continue with the Court examining both the immediate staffing dispute and the broader question of tribunal autonomy.
Source: Supreme Court proceedings, The Indian Express, Hindustan Times, Bar & Bench
Supreme News Network
