The Supreme Court refused to entertain a plea challenging rules barring retired NCLT and NCLAT members from practising before these tribunals after retirement, while hearing former NCLAT technical member Vijai Pratap Singh’s challenge against restrictions preventing former members from appearing as advocates or consultants.
The Supreme Court of India refused to entertain a plea challenging the rule that bars former members of the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) from practising before these forums after retirement.
The matter was heard by a Bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and Vipul M Pancholi.
The petition had been filed by former NCLAT technical member Vijai Pratap Singh, who questioned the validity of the regulation prohibiting retired judicial and technical members from appearing, acting or pleading before the NCLT and the NCLAT as advocates or consultants after demitting office.
During the hearing, the Supreme Court expressed serious reservations about permitting former tribunal members to practise before the same adjudicatory bodies where they had previously served.
The Bench emphasised that the issue was directly connected with maintaining institutional integrity and public confidence in the judicial system.
The Bench observed,
“You have to think about independence of judiciary. You have been a member of the tribunal. It is a super special tribunal. Imagine you appear before another member who was working when you were there. What perception would it create in the mind of an ordinary litigant?”
The Bench also pointed out to Singh that he was always free to approach the Supreme Court.
Justice Bagchi said,
“We will welcome you to argue before the Supreme Court,”
After this remark, Singh chose to withdraw his petition.
The Court’s remarks highlighted concerns that appearances by former members before their previous colleagues could create an impression of undue familiarity or influence, thereby affecting the perception of fairness and impartiality in tribunal proceedings.
The NCLT and the NCLAT are specialised tribunals established under the Companies Act to adjudicate corporate disputes, insolvency matters, mergers, oppression and mismanagement cases, and appeals arising under the Insolvency and Bankruptcy Code (IBC).
Over the years, these tribunals have emerged as key forums handling high-value corporate litigation and insolvency resolution matters across the country.
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Under the existing regulations governing tribunal practice, retired judicial and technical members are prohibited from practising before the NCLT and NCLAT after retirement. The restriction was introduced to preserve the independence of the adjudicatory mechanism and avoid any conflict of interest or perception of bias.
Appearing in person, Singh argued before the Court that instead of a permanent prohibition, a limited “cooling-off period” should be prescribed, after which former members should be allowed to practise before the tribunals.
However, the Bench indicated that it was not inclined to entertain the challenge in view of the larger principles concerning judicial independence and institutional credibility.
Faced with the Court’s unwillingness to interfere, Singh ultimately chose to withdraw the petition. The Supreme Court accordingly dismissed the matter as withdrawn.
The observations made by the apex court are significant in the context of ongoing discussions surrounding post-retirement practice by judges and tribunal members, especially in specialised adjudicatory bodies where concerns regarding neutrality, institutional confidence and conflict of interest frequently arise.
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