New Delhi: The National Company Law Appellate Tribunal (NCLAT) has directed an investigation into an order passed by the Chennai bench of the National Company Law Tribunal (NCLT), stating that the manner in which it was passed makes it appear “dubious”.
The matter pertains to the insolvency of Regen Powertech, where the petitioner — Asset Reconstruction Company (India) Ltd — filed its claims, which were admitted by NCLT Chennai. However, the petitioner decided not to pursue the matter, following which the NCLAT dismissed the case.
While dismissing the case, the NCLAT directed the President of NCLT to conduct an enquiry saying it “cannot ignore the fact that the manner in which the order of 15.03.2022, has been passed (by NCLT)” appears “dubious” and “not plausible”. The appellate tribunal said the NCLT passed the order but there was no mention of listing of the matter on that day, making it appear “dubious”.
The facts and submissions in the matter “raise questions over the functioning of NCLT”, the appellate tribunal observed while passing the order.
“The President, NCLT, is requested to look into the issue and conduct an enquiry, particularly in order to attach fairness to the proceedings of the NCLT so as to repose confidence in the public at large on these major issues,” said two-member bench comprising Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain.
“It is hoped and trusted that as soon as the aforesaid process is completed by the Honourable President, he is requested to furnish the report back to the Honourable Chairperson, New Delhi, (with a copy to us) for necessary further action,” said NCLAT Chennai bench while passing the order last week.
In its two-page order, the appellate tribunal observed “when the proceedings itself was taken up on 15.03.2022, the observations/directions as observed by NCLT, Chennai on 15.03.2022, has been taken as to be the basis of passing of the impugned order on 15.03.2022 itself, which is not plausible.”
NCLAT observed that the proceedings MA/61/CHE/2021 were taken up before the NCLT Chennai on January 18, 2022, the matter was marked part-heard and was directed to be listed on February 15, 2022.
Asset Reconstruction submitted that “as per the order-sheet drawn up on 15.02.2022, the said matter was not listed nor was directed to be listed on 15.03.2022 by the NCLT”.
“But subsequently the matter is shown to have been taken up for hearing on 15.03.2022, without there being any record of prior fixation of such date for hearing, the date on which the impugned order is shown to have been passed, which is otherwise being argued to the contrary by the counsel for the respondent, that as per the cause list showing the status of the case, the matter was taken 15.03.2022 and it was directed to be listed for further consideration on 25.04.2022,” it said. Insolvency against Regen Powertech was initiated by NCLT in December 2019.