SC Order On NCLT Appointments

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ITEM NO.302 Court 7 (Video Conferencing) SECTION X

S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS

Writ Petition(s)(Civil) No(s).510/2021

NATIONAL COMPANY LAW TRIBUNAL AND APPELLATE


TRIBUNAL BAR ASSOCIATION THROUGH ITS SECRETARY Petitioner(s)

VERSUS

MINISTRY OF CORPORATE AFFAIRS & ORS. Respondent(s)


(FOR ADMISSION and IA No.59137/2021-APPROPRIATE ORDERS/DIRECTIONS )

Date : 31-05-2021 This petition was called on for hearing today.

CORAM :
HON'BLE MR. JUSTICE L. NAGESWARA RAO
HON'BLE MR. JUSTICE HEMANT GUPTA
HON'BLE MR. JUSTICE S. RAVINDRA BHAT

For Petitioner(s) Mr. A.S. Chandhiok, Sr. Adv.


Mr. Virender Ganda, Sr. Adv.
Mr. Ajay Kumar Jain, Adv
Mr. Rakesh Kumar, Adv
Mr. Vipul Ganda, Adv
Mr. Vishal Ganda, Adv
Mr. Satyajit A. Desai, Adv.
Mrs. Anagha S Desai, AOR
Ms. Aastha Trivedi, Adv
Ms. Guresha Bhamra, Adv
Mr. Tejasvi Chaudhry, Adv
Mr. Satya Kam Sharma, Adv.

For Respondent(s) Mr. KK Venugopal, Ld. AG


Mr. Balbir Singh, Ld. ASG
Mr. R. Balasubramanium, Sr. Adv.
Mr. Zoheb Hossain, Adv
Ms. Shradha Deshmukh, Adv.
Ms. Chinmayee Chandra, Adv.
Mr. Shyam Gopal, Adv.
Mr. Ankur Talwar, Adv.
Ms. Suhasini Sen, Adv.
Signature Not Verified
Mr. Gurmeet Singh Makker, AOR
Digitally signed by
GEETA AHUJA
Date: 2021.05.31
18:38:08 IST
Reason:

UPON hearing the counsel the Court made the following


O R D E R
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The National Company Law Tribunal and Appellate

Tribunal Bar Association has filed this Writ Petition

seeking a direction to the respondent to fill up the

vacancies of Chairman, NCLAT and President of NCLT without

any further delay. A further direction was sought to issue

letters of appointment to the candidates pursuant to the

Selection procedure initiated in 2019 and to fill up the

remaining vacancies of Members of NCLT and NCLAT. The

petitioner has also sought a direction to extend the term

of six Members of the NCLT and NCLAT for a further period

of five years as they are completing the tenure by June,

2021.

When the matter was listed on 24.05.2021, Mr.

Balbir Singh, learned Additional Solicitor General

submitted that the process for appointment of candidates

who have been selected pursuant to the procedure which was

initiated in 2019 shall be expedited and orders of

appointment shall be issued soon. In respect of the

process to be initiated for filling up the existing

vacancies, a search cum Selection Committee has to be

constituted and we direct that the Selection Process shall

be initiated at the earliest.

In so far as the extension of the term of the

Members of the NCLT and NCLAT who are completing their

tenure in June, 2021 is concerned, the learned Attorney

General for India refers to Section 413 of the Company’s

Act 2013 according to which the President or other


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members of the Tribunal shall hold office for a period of

5 years and shall be entitled for reappointment for

another term of 5 years. He submitted that the government

has initiated the process for reappointment by requesting

the Hon’ble the Chief Justice of India to constitute a

committee for the purposes of the reappointment of members

to the NCLT and NCLAT.

Mr. Amarjit Singh Chandhiok, learned senior

counsel appearing for the petitioner submitted that he

cannot have any objection to the process of re-appointment

being initiated immediately but requested that the members

who are completing their tenure should be permitted to

continue till the process of reappointment is completed.

He brought to our notice that there are 39 members at

present for a sanctioned strength of 63 and the depletion

of the strength of the members will adversely affect the

smooth functioning of the Tribunals.

Mr. Amarjit Singh Chandhiok, learned senior

counsel was supported by Mr.Pradeep Rai, and Mr.Ajay Jain

who argued that the members who are completing their

tenure should be permitted to continue in the interest of

justice and for the smooth functioning of the Tribunals.

As the Government has already initiated the

process of reappointment by writing to the Hon’ble Chief

Justice, we trust and hope that the reappointment process

should be completed expeditiously, as there is no

necessity of issuance of any advertisement for


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participation of other eligible candidates.

Reappointment of members can be considered separately

without waiting for the process of fresh appointments to

commence. As the strength of the members of the NCLT and

NCLAT is depleting which would be detrimental to the

smooth functioning of the Tribunals, we direct the

Government to complete the process at the earliest and not

later than two months.

Writ petition and pending applications, if any,

shall stand disposed of.

(B.PARVATHI) (ANAND PRAKASH)


COURT MASTER COURT MASTER

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