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D. Y. CHANDRACHUD, SUDHANSHU DHULIA
National Company Law Tribunal Bar Association – Appellant
Versus
Union of India – Respondent
JUDGMENT
Dr. Dhananjaya Y. Chandrachud, J. - These proceedings under Article 32 of the Constitution have been instituted by the National Company Law Tribunal Bar Association against the Union government in the Ministry of Corporate Affairs.
2. The petitioner contends that the notification S.O. 3412 (E) dated 20 September 2019 ['impugned notification'] issued by the Ministry of Corporate Affairs appointing 28 candidates as Members of the National Company Law Tribunal['NCLT'] for a tenure of three years is contrary to the provisions of Section 413 of the Companies Act 2013. Sub-section (1) of Section 413 of the Companies Act 2013 stipulates that:
"413 Term of office of President, Chairperson and other Members.- (1) The President and every other Member of the Tribunal shall hold office as such for a term of five years from the date on which he enters upon his office, but shall be eligible for re-appointment for another term of five years."
Reliance is also placed on the decisions of this Court in Madras Bar Association v. Union of India, (2021) SCC Online SC 463, Madras Bar Association v. Union of India, 2021 (7) SCC 369, and Rojer Mathew v. South Indian Bank Limited., 2018 (16) SCC 341.
Courts will not entertain pleas for extension of tenures when members have accepted initial appointments and when such extension would interfere with ongoing selection processes.
The selection of NCLAT Technical Members must adhere to statutory qualifications, and courts cannot substitute the decisions of expert committees unless serious misconduct is alleged.
The main legal point established in the judgment is the requirement for judicial dominance in the Selection Committee and the need to maintain the judicial primacy over the appointment process for th....
The main legal point established in the judgment is the importance of adjudicatory experience and the role of the Search-cum-Selection Committee in making recommendations for the appointment of the C....
The main legal point established in the judgment is the interpretation of the provisions of the Administrative Tribunals Act, 1985 and the Tribunal Reforms Act, 2021, particularly regarding the conti....
The court upheld that the removal of appointed members is lawful under the doctrine of pleasure, affirming no violation of natural justice or constitutional rights as per the Societies Registration A....
when a recommendation is made by the Selection Committee comprising of such high ranking officials and even constitutional functionary, there has to be a very strong and justifiable reason to decline....
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