The Supreme Court criticised the corporate affairs ministry's control over NCLT and NCLAT staffing. Its proposed recruitment reforms seek to restore institutional autonomy and accountability.Stock photo used for illustrationNewdelhi,Oct 29, 2026 14:06 ISTThe Supreme Court on Thursday said the Ministry of Corporate Affairs had “completely hijacked” the National Company Law Tribunal and its appellate body, affecting their autonomy, news agency Press Trust of India reported.A bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana called for the presidents of the NCLT and the National Company Law Appellate Tribunal to have autonomy over appointments.

It suggested deputation as an interim measure, followed by phased regular recruitment through the Union Public Service Commission or the Staff Selection Commission.“I know how contractors play their hands. They don't care about judicial or technical members.

Complete autonomy must be with presidents. They can take UPSC or 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,” the Chief Justice said orally.The observations came during the hearing of a petition filed by contractual employees working at the NCLT and NCLAT.

Senior advocate Meenakshi Arora, appearing for the employees, urged the court to decide the matter and said people who had worked for a considerable period 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,” she said, according to PTI.“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.

That is because you do not want a full-time employee,” Arora said. She submitted that the NCLT recruitment rules provide for regularisation and that the recruitment advertisement also mentioned it. “If that is provided for in the recruitment rules and the advertisement, why should they be thrown out lock, stock and barrel?

That would be extremely arbitrary and violate Articles 14 and 16. Let there be no termination without the approval of the president,” she said.The Chief Justice said he did not approve of contractual appointments.

Recalling an incident in Bombay, he said contractual employees had run away with an original report, following which first information reports had to be registered.“They do not care about the judicial member or the technical member. Technical members are still manipulating certain things.

I do not want to say it in open court. These contractual employees are harassing judicial members,” he said.“Let them also go.

Let this company also be disbanded. Complete autonomy must be with both presidents of NCLT and NCLAT,” the Chief Justice added.He said experienced people from government departments should initially be appointed on deputation. “Meanwhile, they should undertake their own recruitment in a phased manner.

They should take the assistance of UPSC or the Staff Selection Commission. There must be short-term and long-term solutions.

That is the only way,” he said.The bench issued notice on the petition, citing the larger interest, while proposing deputation as a short-term solution and phased regular recruitment through the UPSC or SSC as a long-term measure to strengthen the autonomy of the NCLT and NCLAT.- Ends