“NCLT independently handles staff appointments”: Corporate Affairs Ministry clarifies after SC remarks

New Delhi [India], October 30 (ANI): The Ministry of Corporate Affairs (MCA) on Friday clarified that its role in the appointment process at the National Company Law Tribunal (NCLT) is limited to administrative functions, following the Supreme Court's criticism over alleged interference in the tribunal's functioning and staff appointments.
In an official statement issued through the Press Information Bureau (PIB), the ministry said, "The MCA only performs the administrative role in the conduct of the appointment process for the 63 Judicial and Technical Members of the NCLT."
The clarification comes a day after the Supreme Court expressed concern over the ministry's involvement in the tribunal's administration, observing that the NCLT had been "completely hijacked" by the MCA.
A three-judge bench headed by Chief Justice of India Surya Kant, while hearing a matter concerning staff appointments at the tribunal, stressed the need to preserve its independence and ensure that recruitment powers remain with the NCLT president.
The court's observations came amid concerns raised over the outsourcing of administrative staff recruitment to a private company, which could affect existing contractual employees.
Responding to news reports concerning the Supreme Court's observations, the ministry said the responsibilities of the MCA and NCLT should be viewed separately.
"In the light of certain news reports concerning personnel matters relating to the National Company Law Tribunal (NCLT) made by the Hon'ble Supreme Court, the respective roles of the Ministry of Corporate Affairs (MCA) and the NCLT may be seen in the context of the distinct responsibilities assigned to them," the ministry stated.
It further clarified that recruitment and management of the tribunal's administrative staff fall under the NCLT's own authority.
"The NCLT independently undertakes the process for appointment and management of its officers and staff, including Deputy Registrars, Court Officers, Stenographers, Office Assistants and Multi-Tasking Staff," the statement said.
The ministry also referred to an October 14, 2019 notification through which the government delegated responsibility for staff appointments and management to the tribunal.
"The Government delegated this responsibility to the NCLT vide notification dated 14 October 2019, with a view to ensuring its effective and independent functioning," the ministry said.
The statement, however, did not specifically address the reported outsourcing contract that had prompted concerns during the Supreme Court hearing. (ANI)