Full Breakdown
Supreme Court Says Ministry of Corporate Affairs Has “Hijacked” NCLT and NCLAT
By Drooid · · How we work
In this breakdown
01
Core Event
On October 29 2026 the Supreme Court, in a three-judge bench led by Chief Justice of India Surya Kant, observed that the Ministry of Corporate Affairs (MCA) has “completely hijacked” the administration of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT).
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Background & Context
The NCLT adjudicates corporate civil disputes, company-law violations and insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). A petition filed by contractual employees of the NCLT and NCLAT prompted the Court’s suo motu intervention into the tribunals’ staffing and infrastructure deficiencies.
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Data & Statistics
- Administrative vacancies: 320 sanctioned posts; only 67 filled.
- Judicial and technical vacancies: 16 positions unfilled nationwide.
- Member strength: As of June 30 2026 the tribunals had 26 judicial members and 25 technical members, against a sanctioned strength of 63.
- Infrastructure: Only 13 of the NCLT’s 31 courts operate full-day; the rest hold half-day sittings. Severe corrosion forced the shutdown of the seventh and eighth floors of the Delhi premises on October 8.
- Contractual staff: 678 contractual personnel employed against a sanctioned strength of 798; a contract awarded on October 6 to a foreign firm could displace existing staff from early November.
04
Official Statements & Responses
The Court stressed that appointment powers must rest with the presidents of the NCLT and NCLAT and suggested interim deputation of experienced officers, followed by phased recruitment through the UPSC or SSC. Attorney General R. Venkataramani said the Centre is preparing appointment recommendations and will hold a joint meeting with tribunal leadership and bar representatives.
The MCA’s status report outlined combined allocations of Rs 119.3 crore for 2024-25 to 2026-27 and an Rs 18.19-crore upgrade of the Delhi principal bench. The ministry noted that the Central Public Works Department is expediting renovation work and that temporary premises have been secured on Lodhi Road.
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Criticism & Opposition
Bar association counsel argued that the outsourcing contract violates procedural safeguards and could arbitrarily terminate employees with six-to-eight years of service, infringing Articles 14 and 16 of the Constitution. They warned that reliance on contractual staff erodes institutional memory and threatens the integrity of judicial records.
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Conflicting Reports & Gaps
Sources uniformly report the magnitude of vacancies and infrastructure decay; however, the exact number of vacant judicial and technical members varies slightly across filings. No source provides a definitive timeline for completing the proposed building upgrades.
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Verbatim Quotes
- “We will not do any such thing at the behest of contractual staff. We would like to give full autonomy to the presidents of NCLT and NCLAT on this issue. The only thing is how soon it should happen.” — CJI Kant
- “The ministry wants to have complete grip…And that’s what’s most unfortunate,” — CJI Kant
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What’s Next
The Supreme Court has ordered the presidents of the NCLT and NCLAT to submit proposals on staffing, infrastructure and land needs within four weeks of the October 29 hearing. The Court also expects the Centre, through the Attorney General, to ensure basic amenities are provided promptly and to convene a stakeholder meeting to address the identified gaps.