MCA says its role in appointing NCLT is merely administrative following Supreme Court comments | Today’s news
New Delhi: The Ministry of Corporate Affairs (MCA) on Friday said it has only an administrative role in the appointment of 63 judicial and technical members of the National Company Law Tribunal (NCLT), clarifying its position on reviewing its role in the recruitment process of the corporate tribunal.
The NCLT independently deals with the appointment and management of its officers and staff, including deputy registrars, clerks of courts, stenographers, clerical assistants and multi-tasking staff, the ministry said in a statement. The government delegated these duties to the tribunal through an October 2019 notification to ensure its effective and independent functioning.
The clarification came a day after a Supreme Court bench headed by the Chief Justice of India reportedly observed that the MCA had “hijacked” the NCLT and called for more autonomy for the presidents of the NCLT and the National Company Law Appellate Tribunal (NCLAT) in personnel matters.
“In the light of some reports on personnel matters relating to NCLT issued by the Hon’ble Supreme Court, the respective roles of MCA and NCLT can be seen in the context of different responsibilities assigned to them,” the ministry said.
However, the statement did not explain the process of appointment to NCLAT.
According to news agency PTI, the Supreme Court’s comments came while hearing a petition filed by contractual employees working in the NCLT and NCLAT.
Power of the Tribunal
The NCLT has a sanctioned strength of 63 members, including one President, 31 Judicial Members and 31 Technical Members.
Established under the Companies Act, 2013, the NCLT was formally established on June 1, 2016. Its formation was guided by the recommendations of the Justice Eradi Committee, which called for a single forum to adjudicate corporate and insolvency matters to replace multiple adjudicating bodies, according to the tribunal’s website.
The NCLT was established to streamline the resolution of corporate disputes by consolidating the functions of the erstwhile Company Law Board, Industrial and Financial Reconstruction Board and Industrial and Financial Reconstruction Appellate Authority.
The NCLAT, which also became operational on June 1, 2016, hears appeals against NCLT orders.
