Debangana Ray
Published on August 2, 2022 at 18:14 IST
The Supreme Court informed the Centre that it will be bound to appoint NCLT members for a five-year tenure in accordance with the Companies act.
The Centre is bound by Section 413(1) of the Companies Act, 2013, provisions talks about 5-year tenure for President and members of NCLT.
The Court said, “Plea of the bar association can only be that vacancies be filled up expeditiously so that the work of the tribunal is not hampered. The bar association cannot have a choice on who should be members and for what time.”
Further, it was told by the Bench that, “It is equally important that persons of integrity are selected to man tribunals… Such a request cannot be acceded to when the members themselves have not moved this Court and this Court is not dealing with removal of members. Such an exercise in these proceedings will be wholly inappropriate,”
In their petition seeking a stay on the September 2019 notification, the bar association said, “The early expiration of tenure will create a lacuna that will adversely affect the disposal of matters pending before the Tribunals.”
“The numerous pending cases before the NCLT accompanied with the delay in the appointment of members are a major roadblock in efficient delivery of justice.”
