New Delhi: The Supreme Court on October 29 said the Ministry of Corporate Affairs had “completely hijacked” the recruitment process for staff at the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT). It urged the presidents of both tribunals to regain full control over the administrative appointments.A bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V. Mohana made these oral observations while hearing a petition filed by contractual employees of the tribunals. The apex court issued notice, saying it was taking up the issue in the larger public interest. As a temporary measure, it suggested bringing experienced government employees on deputation while the tribunals gradually begin regular recruitment, with assistance from the UPSC or the Staff Selection Commission, LiveLaw reported. “This system, we are compelled to observe is completely hijacked by Ministry of Corporate Affairs. That is the problem. That is impinging on the autonomy of the institution. That is what you need to look into,” CJI remarked.According to the Bar and Bench, the petition was filed after the MCA decided to outsource staff recruitment. Lawyers told the apex court that on October 6, the ministry awarded a contract to a company described as a foreign firm operating in India. The company was to provide deputy registrars, assistant registrars and stenographers. Senior advocate Meenakshi Arora said the existing contractual employees could lose their jobs on November 1 or 2 and that they would effectively become employees of a private company despite working for a judicial institution. It was also argued that the MCA had taken the outsourcing decision without the approval of the NCLT president. As reported by LiveLaw, the CJI called them “backdoor entrants” and questioned how people who had not been selected through a competitive process could demand permanent jobs. He referred to an incident in Mumbai in which contractual employees allegedly took away an original report, leading to the registration of FIRs. The bench also raised concerns about the proposed outsourcing arrangement. Justice Bagchi said recruitment could be outsourced, but the tribunal itself should remain the employer. The CJI said the power to appoint staff must rest entirely with the tribunal’s president. He added that the Court would examine the issue if the president raised it.Bar and Bench reported that only 67 of the tribunal’s 320 regular administrative posts were filled, leaving 253 vacant. Another 16 posts of judicial and technical members were also vacant. Senior advocate Sanjiv Sen, appearing for the NCLT Bar Association, said two floors of the Delhi principal bench had been closed and all courts were functioning at half strength. “The roofs are collapsing,” he said. He also complained that the Union government had not submitted its suggestions.Attorney General R. Venkataramani said appointment recommendations were being processed and suggested a joint meeting involving the NCLT president, the government and the bar. Advocate Arundhati Katju told the court that staff shortages meant some cases, including those involving personal guarantors, were not reaching the hearing stage. The CJI asked for separate figures on pending cases, since insolvency matters are given priority over cases under the Companies Act.BackgroundAt a hearing in September, the same bench had questioned how tribunals could function without proper infrastructure. It had asked the Union government to identify the facilities they urgently needed. The NCLT Bar Association had told the apex court that at least 18 benches were holding hearings for only half a day. It also said that although the sanctioned strength was 63 members, the tribunal had only 26 judicial and 25 technical members, including the president, as of June 30. Concerns about government control over tribunals have also come up in earlier cases. In November 2025, the Supreme Court struck down important provisions of the Tribunals Reforms Act, 2021 dealing with appointments and tenure. It held that parliament had brought back provisions that the apex court had previously invalidated. The court gave the Union government four months to establish a National Tribunals Commission independent of executive control, SCC Online reported.