Supreme Court Issues Contempt Notice To NCLAT Bench For Disobeying Orders
The manner in which NCLAT has proceeded is unbecoming of a judicial tribunal, the top court observed.
In a major development, the Supreme Court on Wednesday issued contempt notices to a bench of the National Company Law Appellate Tribunal, for allegedly defying orders of the top court.
The notices have been issued against a bench of Justice Rakesh Kumar and Technical Member Alok Srivastava.
The apex court has set aside the order that was passed in alleged defiance by the bench and directed that the case be heard afresh by the chairperson's bench.
The manner in which NCLAT has proceeded to deliver the judgement is unbecoming of a judicial tribunal, the court said.
Dismayed at how the matter had unfolded, the top court observed that the NCLT and the NCLAT have gone to 'rot'.
As per the court's order, the next hearing of the case is on Oct. 30, where both members of the NCLAT will be present.
The case in question pertains to an order regarding the annual general meeting of Finolex Cables Ltd.
Last week on Friday, the top court had directed the appellate tribunal not to pass an order in the matter, until the final results of the AGM were published.
However, the appellate tribunal proceeded to pronounce its order at 2 p.m., whereas the results of the AGM were declared at 2:40 p.m.
According to the lawyers involved in the case, the top court's order was presented before the bench of NCLAT, but to no avail.
As a result, the top court had directed the NCLAT chairperson to enquire into:
Whether the order of the top court as of Oct. 13, 2023 was drawn to the attention of the two judges.
If true, then what were the circumstances in which the tribunal proceeded to pronounce the judgment, despite the clear mandate of the order of the top court.
The court had further said that if what is stated turns out to be true, then it will constitute a clear defiance of the top court's order.
