Madras Bar Association vs Union Of India & Anr

The Supreme Court upheld the constitutional validity of the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) as established under the Companies Act, 1956, while identifying several defects in the provisions of Parts 1B and 1C of the Act, specifically Sections 10FD(3)(f)(g)(h), 10FE, 10FF, 10FL(2), and 10FR(3). The Court emphasized that only qualified judges and advocates should be appointed as judicial members, ensuring they possess equivalent status to High Court judges. The judgment mandates amendments to rectify the identified constitutional infirmities for the proper functioning of the tribunals.