Need To Regulate Transfers & Postings In NCLT, There's A Deep Problem : Supreme Court Tells Union

The Supreme Court today asked the Union government to look into the manner of posting of Judicial/Technical members for the National Company Law Tribunal benches across the country.

"There's an application filed by High Court Bar Association, Indore...it's disturbing...it says no full time judicial/technical member is posted in the NCLT Indore bench...[we] don't want to make it part of judicial order today. Something needs to be done to regulate transfers and postings in NCLT, there's a very deep problem", the Court orally told Attorney General R Venkataramani, while calling for a comprehensive plan to streamline postings in NCLT.

The Court was hearing a batch of matters where it earlier asked Union of India to collate and furnish data on the status of appointments and selection process of judicial/technical/accounting/administrative members of Tribunals across the country. One of the petitions is a public interest litigation initiated by the Madras Bar Association.

At request of the AG, a bench of Justices Surya Kant and N Kotiswar Singh re-listed the matter, giving more time to the Union to hold discussions in terms of previous orders. Notably, the AG submitted that the position with regard to Tribunal vacancies is encouraging and some time may be given to place the details before the Court.

During the hearing, Justice Kant drew the AG's attention to an application concerning Income Tax Appellate Tribunal Bar Association, which urged that members should not be retired before the age of 62 yrs. "They are justified in saying this, that order we have already passed", Justice Kant said to the AG. When it came up that the retirements are due in December, the AG replied that the government is making good efforts to make the appointments and the same will be made by December. 

Pointing out another "disturbing" application by Indore HC Bar Association, which the AG claimed was not supplied to him, Justice Kant said that something needs to be done about the transfers/postings to NCLT. On this, the AG said that he would find out where the problem is. The bench, on its part, ordered the Union and President of NCLT to explore the posting of one judicial and one technical member at Indore bench and submit a compliance report.

Senior Advocate Arvind Datar was also asked to submit a comprehensive report on "commercial" Tribunals, as the bench was of the view that different superannuation norms were causing lot of confusion. "The most important thing is with respect to conditions of service of those members who came to be appointed before this new enactment came. Their conditions can't be affected, we have passed an order prima facie...they are entitled to continue till [age of] 62", said Justice Kant.

It is apposite to mention that earlier, while calling for data from the Union, the Court also asked Senior Advocate Vikas Singh and other members of the Bar to give suggestions to the AG "for improving the working conditions of Tribunals, including an idea to be explored regarding constituting Circuit Benches so as to provide easy access to justice". Justice Kant particularly suggested that advance selection process for Tribunal members be considered (as in the case of NCLAT) since the date of a member demitting office is known.

Case Title: MADRAS BAR ASSOCIATION Versus UNION OF INDIA AND ANR., W.P.(C) No. 1018/2021 (and connected cases)