In a stinging remark, the Supreme Court on Thursday orally remarked that the Ministry of Corporate Affairs has completely hijacked the National Company Law Tribunal and its appellate body, NCLAT.
While calling for autonomy for the NCLT and NCLAT presidents over appointments, a bench comprising Chief Justice Surya Kant, Justices Joymalya Bagchi and V Mohana suggested deputation as an interim measure and phased regular recruitment through UPSC or SSC. “I know how contractors play their hands.
They don’t care about judicial/technical members. Complete autonomy must be with presidents. They can take UPSC/SSC. The tribunal has been completely hijacked by the Ministry of Corporate Affairs. That is impinging on the autonomy of the institution.
That’s the problem. The ministry wants to have complete grip; that’s most unfortunate,” CJI orally remarked.
The observations were made while hearing a petition filed by contractual employees working in the NCLT and National Company Law Appellate Tribunal (NCLAT). Senior advocate Meenakshi Arora, appearing for contractual employees, argued that the court should decide the matter and people who have been working for a considerable length of time should not be removed overnight.
“The contract has been awarded. I have instructions to state, with some degree of responsibility, that in all likelihood, on November 1 or 2, the existing staff will be required to leave and appointments will be made by this independent private company.”
They have worked for six years. They do have certain rights, even if they are on a contractual basis. When appointed on contract by the MCA, they are not entitled to HRA or DA.