The Ministry of Corporate Affairs (MCA) has issued a clarification regarding its involvement in the appointment process for members of the National Company Law Tribunal (NCLT). This statement comes a day after the Supreme Court, led by Chief Justice of India (CJI) Surya Kant, raised serious concerns about perceived interference in the tribunal's administration.
Supreme Court Flags Interference Concerns
During a hearing on October 29, CJI Surya Kant, alongside Justices Joymalya Bagchi and V Mohana, observed that such interference was undermining the NCLT's autonomy. The CJI explicitly stated that the institution had been “completely hijacked” by the corporate affairs ministry, impacting its ability to function independently.
MCA Defines Its Administrative Role
In response to the judicial scrutiny, the MCA clarified that its role is strictly administrative concerning the appointment of the 63 judicial and technical members of the NCLT. However, the ministry emphasized that the NCLT itself holds full autonomy over the appointment and administration of its own officers and staff. This includes positions such as Deputy Registrars, Court Officers, Stenographers, Office Assistants, and Multi-Tasking Staff.
The ministry cited a notification dated October 14, 2019, as the basis for this delegation of responsibility, asserting it was implemented to ensure the tribunal's effective and independent operation.
Judicial Scrutiny Over NCLT Functioning
The Supreme Court's observations were made during a suo motu case addressing critical issues within the NCLT, including member appointments, severe staff shortages, and inadequate infrastructure across its benches nationwide. The court has directed the presidents of both the NCLT and the National Company Law Appellate Tribunal (NCLAT) to submit comprehensive proposals within four weeks. These proposals are expected to detail requirements for infrastructure, buildings, and adequate personnel, including the need for a Deputy or Joint Registrar at every bench to maintain judicial records properly.
Attorney General R Venkataramani proposed a joint meeting involving tribunal leadership and the Bar to prioritize operational and infrastructure needs, a suggestion the court endorsed.
Persistent Staffing and Infrastructure Deficiencies
The NCLT Bar Association has highlighted ongoing challenges, informing the Supreme Court that at least 18 NCLT benches are conducting only half-day sittings due to a significant shortage of members. Despite the substantial expansion of its jurisdiction following the enactment of the Insolvency and Bankruptcy Code (IBC), the tribunal's sanctioned strength has remained at 62 members. As of June 30, 2026, the NCLT had only 26 judicial and 25 technical members, including its president, indicating a considerable shortfall.
Furthermore, the association revealed that all 246 administrative staff members, including crucial court masters, are currently working on a temporary basis. The Supreme Court has underscored the vital role tribunals play in the justice delivery system, urging swift action to address these infrastructure gaps and staffing deficiencies to uphold their independence and efficiency.