Delhi HC notice on plea against NCLAT Chairperson's appointment

The Delhi High Court on Monday sought response from the Centre over a petition challenging the appointment of Justice (retd) Bansi Lal Bhat as the Officiating Chairperson of the National Company Law Appellate Tribunal.

A division bench of the high court comprising Chief Justice D.N. Patel and Justice Prateek Jalan issued notice to the Ministries of Corporate Affairs, Law and Justice and Finance seeking its reponse over the petition filed by social jurist Fozia Rahman.

The court has now posted the matter for further hearing on June 30.

Rahman, through her petition, challenged the notification of the Ministry of Corporate Affairs dated March 12 by which it had appointed Justice (retd) Bhat as officiating Chairperson of the NCLAT.

During the course of hearing, senior advocate Rajeev K. Virmani and advocate M Qayam-ud-Din submitted before the court that the said notification is contrary to and in violation of section 415 of the Companies Act, 2013 as well as the Tribunal, Appellate Tribunal and other Authorities (Qualifications, Experience and other Conditions of Service of Members) Rules, 2020.

The petitioner sought setting aside of the said notification said notification while submitting that the same is "entirely arbitrary, in violation of the applicable provisions of law."

It was also submitted before the court that a representation was sent by the petitioner to the Ministry of Corporate Affairs against the said appointment. "However, no response has been received and it is apprehended that no response will be given, and in the meantime Justice (retd) Bansi Lal Bhat will continue to carry out functions of the office of the Acting/OfficiatingA Chairperson, which may later be under a cloud and of questionable legality if his appointment is ultimately set aside," the plea said.

The plea also sought the court's direction commanding the Central government to appoint an officiating chairperson of the NCLAT as per relevant applicable rules and laws.

The NCLAT was formed by the Central government under Section 410 of the Companies Act, 2013 and is responsible for hearing appeals from the orders of National Company Law Tribunal(s) (NCLT).

The tribunal also hears appeals from orders issued by the Insolvency and Bankruptcy Board of India under Section 202 and Section 211 of IBC. It also hears appeals from any direction issued, decision made, or order passed by the Competition Commission of India (CCI).

( With inputs from IANS )