Current AffairsIndia

Need to introduce legal framework to give us supervisory jurisdiction over NCLTs: NCLAT

The order was passed in view of many appeals before it in relation to repeated adjournments by NCLTs.

The National Company Law Appellate Tribunal (NCLAT) opined on Thursday that there is a need to vest in it the power of superintendence and control over the National Company Law Tribunals (Surinder Kaur vs International Recreation and Amusement Ltd).

A two-member Bench of NCLAT comprising Justice Bansi Lal Bhat, Acting Chairperson and Dr. Ashok Kumar Mishra, Member (Technical) was prompted to make this observation after it took note of many appeal cases before it arising out of repeated adjournments

There is need to introduce a provision in the legal framework to vest power of superintendence and control qua National Company Law Tribunals (NCLT) in this Appellate Tribunal. Due to lack of supervisory jurisdiction many aggrieved persons are compelled to adopt the route of filing the appeal though there is no order on merit,” the order order said.

In the present appeal before the NCLAT, a Resolution Plan under the Insolvency & Bankruptcy Code (IBC) was pending approval before the Adjudicating Authority i.e. NCLT, Principal Bench since 2019.

The Appellant was, thus, aggrieved with the frequent adjournments by the NCLT.

The matter before the NCLT had been adjourned as many as 18 times, it was recorded.

This is not the first case of such nature,” the NCLAT remarked.

The NCLAT further observed that there was no order on merit in the present appeal and even the date on which the matter was posted for hearing before the NCLT had elapsed.

Consequently, the appeal would now not lie, it stated.

The appeal was thus disposed of with a direction to the NCLT to take a call and pass an order on merit in regard to the Resolution Plan pending consideration before it within two weeks.

Source
Via Bar & Bench
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