In a stinging remark, the Supreme Court on Thursday orally remarked that the Ministry of Corporate Affairs has completely hijacked the National Company Law Tribunal and its appellate body, NCLAT.

While calling for autonomy for the NCLT and NCLAT presidents over appointments, a bench comprising Chief Justice Surya Kant, Justices Joymalya Bagchi and V Mohana suggested deputation as an interim measure and phased regular recruitment through UPSC or SSC.

"I know how contractors play their hands. They don't care about judicial/technical members. Complete autonomy must be with presidents. They can take UPSC/SSC. The tribunal has been completely hijacked by the Ministry of Corporate Affairs. That is impinging on the autonomy of the institution. That's the problem. The ministry wants to have complete grip; that's most unfortunate," CJI orally remarked.

The observations were made while hearing a petition filed by contractual employees working in the NCLT and National Company Law Appellate Tribunal (NCLAT).

Senior advocate Meenakshi Arora, appearing for contractual employees, argued that the court should decide the matter and people who have been working for a considerable length of time should not be removed overnight.

"The contract has been awarded. I have instructions to state, with some degree of responsibility, that in all likelihood, on November 1 or 2, the existing staff will be required to leave and appointments will be made by this independent private company.

"They have worked for six years. They do have certain rights, even if they are on a contractual basis. When appointed on contract by the MCA, they are not entitled to HRA or DA. That is because you do not want a full-time employee," she said.

Arora submitted that NCLT recruitment rules provide for regularisation and the advertisement also says so.

"If that is provided for in the recruitment rules and the advertisement, why should they be thrown out lock, stock and barrel? That would be extremely arbitrary and violate Articles 14 and 16. Let there be no termination without the approval of the president," she said.

The CJI said he did not approve of appointment on contarctual basis.

Sharing his experience, the CJI said there was an instance in Bombay where contractual employees ran away with the original report and FIRs had to be registered.

"They do not care about the judicial member or the technical member. Technical members are still manipulating certain things. I do not want to say it in open court. These contractual employees are harassing judicial members.

"Let them (contractual employees) also go. Let this company also be disbanded. Complete autonomy must be with both presidents of NCLT and NCLAT," he said.

The CJI said people should be brought on deputation and experienced persons from government departments should be appointed.

"Meanwhile, they should undertake their own recruitment in a phased manner. They should take the assistance of UPSC or the Staff Selection Commission. There must be short-term and long-term solutions. That is the only way," he said while issuing notice on the plea citing larger interest.