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NCLT: More Concerned for Recruitment of LRA than Members

I. Abstract

The National Company Law Tribunal has recently conducted a recruitment process for their Law Research Associates (LRA) through a multi-tiered selection process notified in late 2025 for all benches throughout India. The recruitment consisted of three stages process- Preliminary, Mains and Interview. This introduces a competitive evaluation and a merit-based selection for one-year tenure. However, such procedural rigour stands in contrast to the appointment process of Judicial and Technical Members of the Tribunal. Despite the statutory requirements provided in Companies Act, 2013, members are often appointed through service background over domain expertise in insolvency, corporate or financial regulations1. The difference between recruitment strikes a structural imbalance within NCLTs institutional design. The Blog aims to evaluate how merit, transparency and specializations are applied across different hierarchical levels in the NCLT. 

II. Draft

The National Company Law Tribunal (NCLT) has recently launched a competitive recruitment for Law Research Associates (LRAs)2 in late 2025, featuring a multi-stage process. This contrasts with the appointment of judicial and technical members, which follows statutory qualifications but is facing ongoing criticism for shortages of members and gaps in expertise.

LRA Recruitment Process

On 22 September 20253, vacancies were floated for the recruitment of Law Research Associates for NCLT Benches located at Ahmedabad, Allahabad, Amravati (Andhra Pradesh), Bengaluru, Chandigarh, Chennai, Cuttack, Guwahati, Hyderabad, Indore, Jaipur, Kochi, Kolkata, Mumbai and New Delhi. While the number of posts was not published, the remuneration, duties, qualification and disqualifications were stated. A separate document with the scheme of examination was published on 16 October, 20254 which covered the selection process of the

examination. It stated that the exam would be held in 3 stages including Preliminary Exam , Descriptive Exam and Interview. The final merit list would be based on the aggregate scores of these 3 stages. This would then lead to the selection of eligible candidates for a tenure of one year in NCLT as Law Research Associates. The role of an LRA is to assist the President/ Members.The new pattern followed for the recruitment for LRAs is much appreciated but it begs the question of the way members of NCLT are recruited and is such scrutiny only for general staff or upper chain hierarchy too.

Statutory Requirements for Members

The appointment of Judicial members and technical members of NCLT the statutory requirement under Section 409 of the Companies Act, 20135 is-

Judicial Member Technical Member
  • A High Court Judge, or

  • A District Judge for at least 5 years, or

  • An Advocate with at least 10 years practice dealing with company law, insolvency, or commercial matters.

  • At least 15 years’ experience as:

    • IAS (Secretary/Additional Secretary level), or

    • Senior officer in Indian Corporate Law Service (ICLS), or

    • Senior professional with demonstrated expertise in: Corporate law; Insolvency; Finance, accounts, economics, administration

The section does not provide for any exception or relaxation, it is absolute and leaves no scope for deviation.

Contrasting Recruitment Approaches

Aspect LRA Recruitment Members Appointment

Selection Method

Multi Staged: Prelims, Written Exam and Interview

Government Notification, Statutory eligibility check

Emphasis

Merit, Research skill, Domain knowledge

Qualification met via seniority/service

Tenure

1 year Contractual, Can be

5 years or 65 age limit

ended anytime with a 15 day notice

Level of Competition

High, Nation wide applicants

Limited Pool

LRAs face competitive evaluation, while member selections prioritize eligible backgrounds without equivalent rigor.

Recent Appointment of Members

The sanctioned strength for NCLT is 63 and it currently has 54 members of which 24 (11 Judicial Members and 13 Technical Members) were appointed under the notification by the Ministry of Corporate Affairs on 7th January 2025, which included 6. Before which NCLT was operating with less than half its strength. If we evaluate appointment of technical member by the notification on 7th January 20257-

Background Count

Indian Revenue Service

8

Chartered Accountant

2

Banking

1

SEBI

1

Defence

1

Source: Profile of Hon’ble President and Sitting Members of NCLT8

While they align with Section 409(3) of the Companies Act, 2013, qualification with 15+ years of experience in administration, heavy dominance of IRS (62%) reflects administrative seniority over specialized corporate expertise.

Conclusion

The Supreme court has critiqued multiple times over member shortage, lack of domain expertise and judicial overreach of NCLT.9 Reason for the same can be assessed as-

● Many Technical Members are career bureaucrats with little exposure to insolvency resolution and no commercial adjudication background

● Judicial Members often come from Criminal or service law backgrounds and have minimal exposure to corporate restructuring.

Such disparity creates institutional imbalance with robust supporting staff versus persistent members gives rise pending caseloads, especially in specialized matters such as Insolvency. Uniform scrutiny and across levels could enhance transparency and expertise in NCLTs corporate and insolvency adjudications. Also statements from officials suggest that the strength of members in NCLT is to rise from 63 to 11310. So for future appointments such flags should be highlighted for better expertise in members of NCLT.

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