Calcutta HC Upholds Shifting of NCLT Premises to New Town, Dismisses appeal of NCLT Bar Association [Read Order]

The Calcutta High Court reiterated a single bench ruling that rejected a plea by NCLT Bar Association contesting the Ministry of Corporate Affairs' proposal to relocate the NCLT Kolkata headquarters from the High Court to a new structure in the New Town neighborhood of the city.

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The appellant  argued that the single judge's decision from March 25, 2025, was unconstitutional and could be overturned because the single judge did not recognize that the Ministry of Corporate Affairs' (MCA) plan to move the National Company Law Tribunal (NCLT), Kolkata Bench, to the newly built Corporate Bhawan was capricious, lacked clear justification, and lacked transparency.

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Along with other executive departments under the MCA, such as the Regional Director, Registrar of Companies, Official Liquidator, and Serious Fraud Investigation Office, the project aims to house the Tribunal. Such an action defeats the constitutional mandate outlined in Article 50 of the Indian Constitution by undermining the fundamental principles of the separation of powers and the independence of the judiciary.

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The respondents' counsel argued that the appellants in this case are not harmed and have not shown that their fundamental rights have been violated. The Ministry of Corporate Affairs' decision to move the NCLT, Kolkata Bench from its existing site close to the Calcutta High Court to Corporate Bhawan, New Town, is the only basis for the plea.

A division bench of Justices Rajarshi Bharadwaj and Apurba Sinha Ray observed that the appellants merely allege inconvenience to advocates, clerks and litigants, which cannot constitute legal injury or locus standi to maintain the writ petition.

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In essence, the writ petition aims to subtly assert a public interest, which is not permitted under the pretense of a personal writ. Furthermore, unless proven to be capricious or malicious, which is not the case here, the location and operation of a tribunal are outside the purview of judicial scrutiny and lie under the purview of executive policy determinations.

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While dismissing the appeal, the court held that "It is a well-settled principle of constitutional law that the judiciary must maintain institutional boundaries and refrain from trenching upon the domain of the executive. Matters relating to the selection of premises, allocation of infrastructure and logistical decisions regarding the functioning of tribunals fall squarely within the realm of policy formulation and administrative convenience. Courts are not equipped, nor are they mandated, to undertake such evaluations or substitute their own judgments in place of that of the competent authorities.”

To Read the full text of the Order CLICK HERE

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