The Centre and the Supreme Court literally went for a showdown on Thursday on the issue of appointment to various tribunals and premature retirement of NCLAT chairman Justice Ashok Iqbal Singh Cheema.

The Centre climbed down after Chief Justice of India NV Ramana warned  Attorney General KK Venugopal that the court  would quash the new Act regarding appointments to various tribunals. Facing the Supreme Court’s ire, the Centre said Justice Cheema would continue as NCLAT chairman till September 20. 

The hearing  reached a point when the bench headed by the Chief Justice warned the Centre that it would exercise its suo motu power to stay the Tribunals Reforms Act,

2021, which was referred to by Attorney General KK Venugopal as empowering statute to retire the NCLAT head.

Justice Cheema, the former Chairperson of National Company Law Appellate Tribunal (NCLAT), was to superannuate on September 20, but Justice M Venugopal was appointed as the acting head of the tribunal with effect from September 11, creating a peculiar situation.

Justice Cheema on Wednesday moved the court against the Government’s decision.

However, later KK Venugopal, on instruction from the Centre, apprised the bench, also comprising justices Surya Kant and Hima Kohli, about the changed stand of the Government leading to the closure of the row.

“I have taken instructions. It was said he (Cheema) took leave to write judgments. So, we have decided that he will be allowed to go to office and pronounce judgments, the current chairperson Justice Venugopal will be sent on leave,” he told the bench.

“The submission is accepted and consequential orders will be passed (by the Government). The current chairperson will be on leave till September 20 and this order is passed keeping in mind the peculiar facts and circumstances of this case,” the bench said. At the outset, the bench was informed by the top most law officer that “the Government wants him to concede” on the retirement of Justice Cheema.

“Then we will record it and close the case,” the CJI observed. However, the bench got irked after the Attorney General made further submissions that the reinstatement of Cheema from September 11 to 20 would be notional only to enable him to get retirement benefits sans actual powers of the office as it will be very “awkward” to remove the incumbent Justice Venugopal from the post.

“Mr Attorney, tell us, how fair is it? He has some judgments to pronounce. If you retire him, there will be a problem of rehearing those cases. The way these orders were passed was also awkward. If your government thinks they want to stick to that then it’s okay,” the bench observed.

KK Venugopal said the Government has the power under the Tribunals Reforms Act to terminate the services of the NCLT chairperson,  adding that the termination letter was part of the  new law which overrides the apex court’s  judgement in the Roger Mathew case.  “Then we will have to stay your  legislation (The Tribunal Reforms Act),” the CJI said.

“Let me take the instructions. It will be very awkward for us to remove a person. I am prepared to argue the stay petition also. The Government has certain powers,” the Attorney General said, and sought 30 minutes to get instructions.

When the matter was taken up again, the top most law officer informed the court about the changed stand of the Government.