Supreme Court demands infrastructure and staffing reforms for NCLT and NCLAT

The Supreme Court of India has called for comprehensive proposals from the Presidents of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) regarding land, buildings, and staffing requirements. A bench led by Chief Justice of India Surya Kant emphasized the need to strengthen the day-to-day functioning of these tribunals, which serve as a lifeline for handling insolvency and company law cases.

The Court expressed significant concern regarding the autonomy and recruitment practices of the tribunals. Specifically, the bench criticized the use of contractual appointments for judicial and administrative staff, citing risks to record security and institutional accountability. To ensure transparency, the Court suggested that recruitment should be conducted through established institutions like the Union Public Service Commission (UPSC) or the Staff Selection Commission (SSC), or through deputation from government departments.

Furthermore, the Court stressed that tribunal chairpersons should maintain autonomy over administrative matters and appointments to prevent undue influence from the Union Ministry of Corporate Affairs. The proceedings follow previous judicial observations regarding shortages of members and inadequate facilities at both principal and regional benches.