SC says 'will consider' NCLT’s petition challenging tenure, terms of members' appointments

The Supreme Court (SC) vacation bench announced today that it will have to consider a petition filed by the National Company Law Tribunal (NCLT) Bar Association, which challenges the Ministry of Corporate Affairs' notification regarding the appointment procedure for members, their rights, and their right to serve for five years instead of four.

"We are not passing any orders at this stage. The regular bench would have to consider the matter," the bench announced, as reported by India Today.

One of the NCLT's judicial members was denied a hearing by the SC. "You accepted the terms of appointment when you accepted the appointment. You have not filed any applications. Will hear if any applications are filed by the currently appointed members," the bench said.

The hearing has been postponed to July 19.

PIL OVER DELAY IN NCLT APPOINTMENTS

In its affidavit before the apex court, the Ministry of Corporate Affairs has pointed out that the functioning of the NCLT is critical to the country's economy, and that till April, the total sum engaged in insolvency and bankruptcy proceedings before the tribunal was to the tune of Rs 17.5 lakh crore.

The Supreme Court ordered the government to explain why, while applying for NCLT members and chairman positions, the duration of the appointment was not specified in the advertisement.

"We don't know what the prescribed date of superannuation is. We don't know whether any of the current members are near the age of retirement. The ad says 65 years of age or 5 years as member, whichever is first," the bench remarked.

(With inputs from Aneesha Mathur)

Also read: Sequoia Capital urges court to dismiss defamation lawsuit filed by one of its former counsel

Also read: India’s biggest worry at the moment should be the MSME sector, warns top economist Pronab Sen