SC dismissed a plea seeking modification in the tenure of NCLT members

Bench: Justices D.Y. Chandrachud and Sudhanshu Dhulia

The Top Court recently dismissed a plea seeking modification in the tenure of National Company Law Tribunal (NCLT) members appointed pursuant to a 2019 notification issued by the Ministry of Corporate Affairs, from three years to five years. The bench, however, clarified that in the future, while making an appointment, the Central Government will be bound by Section 413 of the Companies act, which states the tenure of the NCLT members to be five years. 

The Court was hearing a writ petition filed by the NCLT Bar Association, challenging the 2019 notification.

The Additional Solicitor General, Mr. Balbir Singh informed that out of 30 vacancies, members for the 15 vacancies are already shortlisted by the selection committee. The process of appointment will be completed within 4-6 weeks. It was further clarified that 23 seats are vacant as the tenure of the 23 members is coming to end in July 2022. 

The Bench said that the tenure of the members should not be the concern of the Association. The Bar should be concerned with the filling up of the vacancies at the earliest so that there is no delay in the delivery of justice. The bench further said that as informed by the Additional Solicitor General, the process to fill the vacancies is going on, and hence, we refuse to interfere in any manner.

The 2019 notification prescribed the tenure of the members as three years or until the member attains the age of 65 years, whichever is earlier. A 2021 notification was issued wherein 18 members were appointed for 5 years. In view of the same, the bench did not disturb the appointment of the members pursuant to the notification