Sunday, February 9, 2025

NCLT Mumbai Faces Operational Challenges Amid Staff Strike

Over 150 contractual and outsourcing staff at the Mumbai bench of the National Company Law Tribunal (NCLT) went on strike on Tuesday due to non-payment of their December 2024 salaries.

The striking workers are demanding immediate payment and a salary revision, citing repeated delays in disbursements that have affected their livelihood.

Staff Grievances and Impact on NCLT Operations

In a memorandum to the registrar of NCLT Mumbai, the striking workers stated that they were “refraining from performing their professional obligations” until all their grievances were addressed.

They highlighted that the NCLT has not revised salaries since its inception on June 1, 2016.

Additionally, they pointed out that salary disbursements have been delayed for the last six months.

The strike has significantly impacted the functioning of the NCLT Mumbai, which deals with corporate disputes such as oppression and mismanagement, as well as scheme matters like mergers and amalgamation under the Companies Act.

The lack of support staff, including stenographers, has forced judges to give adjournments, disrupting proceedings and causing hardship to litigants.

Financial Strain and Government Response

The striking staff cited an alleged funding crisis from the Central Government as the reason for the salary delays.

They mentioned that they do not have money to pay for essentials such as children’s school fees and household groceries.

Additionally, they struggle to afford medication for their parents.

Various stakeholders urge the Ministry of Corporate Affairs (MCA) to resolve the issue swiftly to prevent further disruptions.

Advocate Ashish Pyasi, partner at law firm Aendri Legal, emphasized the need for immediate resolution.

He stated that the issue affects the working of the bench and cases pending before it.

He added that the litigants suffer the most due to strikes. The MCA must take immediate steps to address the grievances of the striking staff.


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Sahiba Sharma
Sahiba Sharmahttps://sightsinplus.com/
Sahiba Sharma, Senior Editor - Content at SightsIn Plus