NCLT Vacancy Crisis: Urgent Cases Only

Estimated read time 2 min read

Due to a shortage of members, the National Company Law Tribunal (NCLT) announced that it will only be hearing “urgent cases” through video-conferencing at its 15 benches across the country. This will continue until further notice. The notification, issued by NCLT registrar Kamal Sultanpuri, stated that the shortage of Hon’ble members is further exacerbated by members seeking leave. Currently, there are 30 vacancies out of a sanctioned strength of 63. A selection panel has made 15 recommendations that are pending with the government, and the Corporate Affairs Ministry has issued an advertisement for applications to fill the remaining vacancies. Some former members whose three-year tenure ended in June have also applied for appointment. In May, NCLT had 20,963 cases pending before it. NCLT deals with various corporate structure issues and has both judicial and technical members to adjudicate disputes. The Tribunal is at the centre of a standoff between the government and the judiciary over the appointments and service conditions of members. The government initially fixed a three-year tenure for NCLT members, but with the Supreme Court striking down the amendments, the government has been forced to revert to a five-year tenure. On September 9, 2021, a notification was issued for the appointment of 18 members for a term of five years. However, in June, the government extended the tenure for two additional years only for two judicial members and six technical members among the 23 members appointed in 2019. The government stated that the decision was made after considering the “character, antecedents and work performance” of members, and was signed off by a selection committee headed by CJI N V Ramana.

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