New Delhi: The Supreme Court on Thursday said it is unfortunate that the Ministry of Corporate Affairs (MCA) wants to have a grip over the administration of the institution, while expressing concern over the functioning of the National Company Law Tribunal (NCLT).

A bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V Mohana orally observed, "The ministry wants to have a grip over (the institution)…. And that's what's most unfortunate.”

The bench said that it is compelled to observe that the institution has been completely controlled by MCA, which is the problem, and it is impinging on the autonomy of the institution.

The bench made these oral observations after a counsel appearing in a connected petition raised concerns over outsourcing NCLT staff recruitment to a private company.

"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,” observed the CJI orally. 

It was argued before the bench that the ministry awarded a contract in October to a foreign company operating in India for deploying administrative personnel, including deputy registrars, assistant registrars, and stenographers. It was also argued that the arrangement could result in displacing existing contractual employees starting in November.

The bench asked whether contractual employees who have not undergone a competitive recruitment process could claim regularisation or a right to continue in service.

"We will not allow you people to continue; we will not allow these private contractors to continue. Let the reference come from the NCLT President,” observed the bench, adding that the entire power of appointment must be with the President only.

The bench expressed its discontent regarding the conduct of certain contractual employees and referred to instances where judicial records had allegedly been removed and criminal cases were registered.

A senior counsel, representing the NCLT Bar Association, drew the court’s attention to the deteriorating infrastructure at the NCLT's principal bench in Delhi.

The bench directed the presidents of the National Company Law Appellate Tribunal and the National Company Law Tribunal to submit detailed proposals outlining the infrastructure, buildings and staffing required to improve the tribunals’ day-to-day functioning.

The bench said the proposals may also include the requirements for land/building and requisite staff. It added that NCLT will also consider the desirability of an officer in the rank of Deputy/Jt. and Registrar for every bench to maintain judicial records.

"Let all such requirements be examined and placed before us. We will appreciate if requisite information is forwarded to this court in four weeks. Attorney General shall nevertheless impress upon the Union to ensure that all basic amenities are made available at the earliest," the bench said.

The bench also asked the Centre to hold a meeting with the stakeholders concerned after Attorney General R Venkataramani proposed a joint meeting with the tribunal leadership and the Bar to identify priorities.

The bench was hearing a suo motu plea concerning inadequate infrastructure, staff vacancies and administrative difficulties affecting NCLT benches across the country.

Earlier, the apex court directed the Centre to identify infrastructural amenities urgently required by the National Company Law Tribunal benches in consultation with the NCLT president.

The NCLT Bar Association has filed an application in a pending matter contending that at least 18 NCLT benches are holding only half-day sittings due to a shortage of members.