Vidushi Vats
Chief Justice of India DY Chandrachud pointed out a concerning state of affairs at the National Company Law Appellate Tribunal (NCLAT) on Wednesday. He took action by issuing contempt notices to judicial member Rakesh Kumar and technical member Alok Shrivastava, pertaining to the Finolex Cables case. Chief Justice Chandrachud questioned why the apex court shouldn’t initiate contempt proceedings against them and directed them to personally appear on October 30.
He observed, “I am not talking about Justice Ashok Bhushan (NCLAT chairperson). He is one of the most dignified judges I know… but NCLT and NCLAT have got down to a rot now. This case is an illustration of that rot.”
The Supreme Court has overturned the NCLAT bench’s previous judgment from October 13, which mandated the company to disclose the annual general meeting (AGM) figures. The bench, which included Justices JB Pardiwala and Manoj Misra, has decided that the case will now be presided over by Justice Ashok Bhushan.
Earlier on October 13, the Supreme Court had directed the NCLAT to deliver its judgment and announce the results of the AGM Meeting only subsequent to receiving the scrutinizer’s report. This latest decision marks a significant shift in the course of the case.
In a turn of events, the court’s directive was posted at 1:55 pm, with the attorney promptly notifying the NCLAT bench set to announce the verdict at 2 pm. Surprisingly, the NCLAT’s two-member panel proceeded with the pronouncement at 2:40 pm, a move that preceded the uploading of the scrutinizer’s report.
Responding to this irregularity, the Supreme Court, on Friday, instructed the NCLAT chairperson to conduct an inquiry and furnish a report by Monday. Additionally, the Supreme Court temporarily suspended the judgment. The bench emphasized the need to issue orders in order to safeguard the esteem of the Supreme Court. This development marks a significant step in rectifying the procedural missteps.
The bench additionally noted that Kumar and Srivastava appeared to be prima facie guilty of “falsehood”. This observation came in light of the NCLAT’s order pertaining to the annual general meeting of Finolex Cables.
The backdrop to this ruling involves an ongoing dispute between Prakash Chhabria and Deepak Chhabria regarding control of the company. The court’s findings suggest a significant development in the resolution of this contentious issue.