Hindustan Times (Noida)

NCLT tenures: Govt says only 8 met criteria

- Abraham Thomas letters@hindustant­imes.com

NEW DELHI: The Union government granted a two-year extension to only eight of the 23 members who were scheduled to retire from various benches of the National Company Law Tribunal (NCLT) by next month because the remaining 15 failed to meet the criteria of good character, antecedent­s, work performanc­e and suitabilit­y, an affidavit filed by the Centre in the Supreme Court on Friday disclosed.

The affidavit was filed by the Ministry of Corporate Affairs a day after the top court directed the government to make public the decision taken by the committee headed by Chief Justice of India (CJI) NV Ramana on the issue of extending the three-year tenures of 23 members of NCLT to five years.

The 31-page affidavit, reviewed by HT, revealed that the decision to extend the tenures of eight out of 23 NCLT members was taken after the Cji-led panel left it to government to take “appropriat­e action in the matter”.

On June 6, the affidavit stated, the four-member panel, which also comprised another Supreme Court judge, justice Surya Kant, noted that “there is no express provision in the rules, which empowers the committee to consider the issue of revision of the term of office of members, NCLT”, asking the government to decide the issue of extending the tenure.

The panel’s mandate to let the government take a call came on June 6, even as in the previous meeting that was held on April 20, the panel resolved that the report to be submitted by NCLT president on antecedent­s, work performanc­e etc. of the 23 NCLT members will be placed before it for considerat­ion in its next meeting.

In the June 6 meeting, the panel recorded: “Considerin­g the sensitive nature of functions and duties, verificati­on reports of members with regard to their character and antecedent­s and the report on the work performanc­e and suitabilit­y, the committee is of the view that Government may take appropriat­e action in the matter.”

The committee further noted that there was no express provision in the Rules governing the selection of NCLT members, which empowered the Committee to consider the issue of revising the term of office of members of NCLT from three to five years.

Having got the go ahead from the committee, the Centre issued a notificati­on on June 14 revising the tenure of two judicial members and six technical members from their original term of three years to five years.

The Centre objected to the petition by NCLT Bar espousing the cause of the 23 members, stating that the tenure of appointmen­t of some individual­s can never be a subject matter of public interest litigation.

THE REMAINING 15 DID NOT MEET

THE CRITERIA OF PERFORMANC­E, ANTECEDENT­S ETC, THE CENTRE SAID

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