Supreme Court Questions MCA’s Control Over NCLT
The Supreme Court on Thursday questioned the ministry of corporate affairs’ (MCA) alleged excessive control over the functioning of the National Company Law Tribunal (NCLT), which is vested with adjudicatory powers under the Companies Act and the Insolvency and Bankruptcy Code. The apex court observed that the NCLT’s administration had been “completely hijacked” by the ministry, raising concerns over its autonomy.
The court said the power to appoint staff should rest with the NCLT president and issued notice to the Centre on a petition challenging the outsourcing of recruitment to a private company. It also directed the presidents of the NCLT and the National Company Law Appellate Tribunal (NCLAT) to submit detailed proposals within four weeks on their staffing, buildings, land and other infrastructure needs.
