Delhi HC issues notice to Central Govt over appointment of officiating INCLAT chairperson

June 16, 2020

New Delhi: The Central Government was given a notice by Delhi High Court on Tuesday seeking its response on a PIL challenging a notification appointing Justice (Retd) Bansi Lal Bhat as the officiating chairperson of the National Company Law Appellate Tribunal (NCLAT).

The response was sought from the Ministry of Corporate Affairs, Ministry of Finance, and Ministry of Law and Justice by a division bench of Justice DN Patel and Justice Prateek Jalan, petitioner social justice layer Fozia Rehman said.

She had sought quashing of the notification dated March 12, 2020.

The petition filed by social justice lawyer Fozia Rehman had sought quashing of the notification dated March 12, 2020.

Appearing before the Division Bench, Senior Advocate Rajeev K Virmani and Advocate M Qayam-Ud-Din appeared brought to its that the notification appointing Justice (Retd) Bansi Lal Bhat as officiating Chairperson of the National Company Law Appellate Tribunal was contrary to and in violation of the provisions of the Companies Act, 2013 as well as the Tribunal, Appellate Tribunal and other Authorities Rules, 2020.

They submitted that the appointment was also not in compliance of the Tribunal, Appellate Tribunal and other Authorities (Qualifications, Experience and other Conditions of Service of Members) Rules, 2020 and Section 415 of Companies Act, 2013.

The petitioner said that under the constitutional framework, allowing any member to be appointed as officiating chairperson dehors ‘seniority’ by the executive, is palpably unconstitutional and would make them amenable to the whims of the executive, hampering discharge of judicial functions.

She said she had made a representation on June 8, 2020, to the Ministry of Corporate Affairs but received no response from it, and she apprehended that no response will be given, and in the meantime, the acting/officiating chairperson will continue to carry out functions of the office, which may later be under a cloud and of questionable legality if his appointment is ultimately set aside.

–India News Stream