Law & Justice
MCA Clarifies It Only Handles Administrative Tasks in NCLT Appointments
The Ministry of Corporate Affairs (MCA) stated on Friday that it has only an administrative role in appointing the 63 judicial and technical members of the National Company Law Tribunal (NCLT). The ministry clarified that the NCLT independently manages the appointment and oversight of its officers and staff, including deputy registrars, court officers, stenographers, office assistants and multi‑tasking staff. These responsibilities were delegated to the tribunal by an October 2019 notification to ensure its effective and independent functioning.
The clarification followed remarks by a Supreme Court bench headed by the Chief Justice of India, who reportedly said the MCA had “hijacked” the NCLT and called for greater autonomy for the presidents of the NCLT and the National Company Law Appellate Tribunal (NCLAT) in personnel matters. In response, the ministry said, “In the light of certain news reports concerning personnel matters relating to the NCLT made by the honourable Supreme Court, the respective roles of the MCA and the NCLT may be seen in the context of the distinct responsibilities assigned to them.” The statement did not explain the appointment process for the NCLAT.
The Supreme Court’s comments came while hearing a petition filed by contractual employees working in the NCLT and NCLAT.
The NCLT has a sanctioned strength of 63 members: one president, 31 judicial members and 31 technical members. Constituted under the Companies Act, 2013, the NCLT was formally established on 1 June 2016 following the Justice Eradi Committee’s recommendation for a unified forum to adjudicate company law and insolvency matters, replacing multiple adjudicating bodies. The NCLT was created to streamline corporate dispute resolution by consolidating the functions of the former Company Law Board, the Board for Industrial and Financial Reconstruction and the Appellate Authority for Industrial and Financial Reconstruction. The NCLAT, also operational since 1 June 2016, hears appeals against NCLT orders.
Frequently asked questions
What role does the MCA play in appointing NCLT members?
The MCA has only an administrative role; NCLT independently manages the appointment and oversight of its officers and staff.
How many members does the NCLT have?
The NCLT has a sanctioned strength of 63 members: one president, 31 judicial members, and 31 technical members.
When was the NCLT established?
The NCLT was formally established on 1 June 2016 following the Justice Eradi Committee’s recommendation.