# National Company Law Tribunal And Appellate Tribunal Bar Association through its Secretary  Vs. Ministry of Corporate Affairs & Ors. Writ Petition (Civil) No(s). 510/2021

> SC judgment dated 2021-05-24. Citation: TCN-2021-SC-00042. The National Company Law Tribunal and Appellate Tribunal Bar Association filed a Writ Petition to…

- **Court:** SC
- **Order date:** 24 May 2021
- **Citation:** TCN-2021-SC-00042
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/national-company-law-tribunal-and-appellate-tribunal-bar-association-through-its-6588b343

## Summary

### Background

The National Company Law Tribunal and Appellate Tribunal Bar Association filed a Writ Petition to direct the Respondents to fill vacancies of Chairman, NCLAT, and President, NCLT. The petition also seeks the issuance of appointment letters to selected candidates and the filling of all NCLT member vacancies. The petition highlights that only 38 members are present against a sanctioned strength of 63, and six members are retiring in the first week of June 2021. The process for re-appointment of members has not commenced, necessitating an extension of tenure to ensure the Tribunals' work is not affected. The appointment process initiated in 2019 has been delayed due to the pendency of the writ petition and an ordinance dated 2021-04-04.

## Facts

The National Company Law Tribunal and Appellate Tribunal Bar Association filed a Writ Petition seeking directives to fill vacancies in NCLT and NCLAT. There are vacancies for the positions of Chairman, NCLAT, and President, NCLT. The petitioner also seeks the issuance of appointment letters to those already selected and the filling of all NCLT member vacancies. Only 38 members are present against a sanctioned strength of 63. Six members are retiring in the first week of June 2021. The appointment process initiated in 2019 has been delayed due to the pendency of the writ petition and an ordinance dated 2021-04-04. The Appointments Committee of the Cabinet is considering the list finalized by the Search-cum-Selection Committee (SCSC).

## Issues and analysis

### Issue 1: Whether the Respondents should be directed to fill the vacancies of Chairman, NCLAT, and President, …

**Ratio:** The ratio is based on the principle that tribunals must have adequate staffing to

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**Reasoning:** The Court reasoned that the vacancies were hindering the functioning of the tribunals and

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**Interpretation:** The interpretation is that the court has the power to direct government bodies

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**Application:** The Court applied this principle by directing the Respondents to expedite the

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## Parties

- **Judges:** L. NAGESWA…; HEMANT…; +1 more
- **Appellants:** NATIONAL COMPANY…
- **Respondents:** Ministry of…

## Timeline

- **2021-04-04 — Ordinance…**: Ordinance was issued, contributing…
- **2019-01-01 — Appointment Process…**: The process for appointment of…

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