A dispute over the leadership of the National Company Law Tribunal has reached court after the Union government defended its decision to appoint a Judicial Member as Acting President following a vacancy at the top post.
The petition — which has now been withdrawn — comes at a time when more than Rs 15 lakh crore remains tied up in insolvency proceedings, while creditor recoveries continue to range between 30% and 36%. The tribunal, which handles corporate insolvency and company law matters, is also dealing with more than 30,000 pending insolvency cases and about 1,900 active resolution processes, with timelines extending beyond 700 days.
According to a counter affidavit filed by the Union of India and seen by NDTV Profit, the dispute centres on whether a Technical Member can be appointed Acting President. Kaushalendra Kumar Singh, a Technical Member of the tribunal, has challenged the government's decision to appoint a senior-most Judicial Member to the role.
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Vacancy Timeline
The post of President fell vacant on Feb. 13, 2026, after Justice (Retd.) Ramalingam Sudhakar demitted office on attaining the age of 67. The Ministry of Corporate Affairs told the court that it had moved a proposal in December 2025 seeking the recommendation of the Chief Justice of India to appoint a successor, in line with the Companies Act.
However, the affidavit states that the recommendation had not been received by the time the position fell vacant. The government then made interim arrangements to ensure continuity at the tribunal, which now exercises jurisdiction earlier held by High Courts.
On Feb. 13, Judicial Member Deep Chandra Joshi was given additional charge as Acting President under Section 415(1) of the Companies Act. His term was to end on March 16. With no appointment finalised by then, the government issued a fresh notification appointing Bachu Venkat Balaram Das, described as the senior-most Judicial Member, as Acting President for six months or until a regular appointment is made.
Dispute Over Eligibility
Singh has argued that he is the senior-most member based on date of joining and should have been appointed Acting President. The Union government has rejected this claim, stating in its affidavit that the issue is not limited to seniority.
“The office of the President of the NCLT carries a distinct constitutional character,” the government said, adding that the tribunal performs adjudicatory functions that were earlier vested in High Courts.
It argued that only a Judicial Member can head the tribunal, even in an interim capacity.
Judicial Role
The affidavit cites Supreme Court rulings to state that tribunals replacing High Courts must retain a judicial character. It said the head of such a tribunal must have judicial experience comparable to that of a High Court judge.
The government also pointed to the Companies Act, which distinguishes between Judicial Members and Technical Members. It said the law includes the President within the definition of a Judicial Member but does not extend this to Technical Members, indicating legislative intent.
It also raised concerns about bench composition. The Principal Bench in New Delhi must include one Judicial Member and one Technical Member. Appointing a Technical Member as Acting President would lead to a situation where the bench is staffed by two Technical Members, which would not meet statutory requirements.
The affidavit further noted that the President exercises powers over listing of cases, constitution of benches, transfer of matters and administrative oversight. “These functions directly affect the delivery of justice,” the government said.
The government has defended its March 16 notification appointing Bachu Venkat Balaram Das as Acting President as being in line with the law and past practice.
The Delhi High Court will now examine whether the Companies Act allows a Technical Member to serve as Acting President. The case also raises broader questions on how leadership gaps are handled at tribunals that oversee large-value disputes.
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