Asset Reconstruction Company (India) Limited Vs Ebenezar Inbaraj (NCLAT Chennai)
The National Company Law Appellate Tribunal (NCLAT), Chennai Bench, has dismissed an appeal filed by Asset Reconstruction Company (India) Limited against an order passed by the National Company Law Tribunal (NCLT). The dismissal came at the request of the appellant’s counsel, who submitted that the appeal had become infructuous due to the admission of their claim.
However, while dismissing the appeal, the NCLAT took a serious note of the manner in which the NCLT had passed the order dated March 15, 2022, which was the subject of the appeal. The Appellate Tribunal highlighted several discrepancies and unusual circumstances surrounding the NCLT proceedings.
According to the record, the matter, pertaining to MA/61/CHE/2021, was heard by the NCLT, Chennai, on January 18, 2022, and was marked as part-heard, with the next listing scheduled for February 15, 2022. The appellant’s counsel submitted that the order sheet for February 15, 2022, did not indicate that the matter was listed or directed to be listed on March 15, 2022. Surprisingly, the matter was shown to have been taken up for hearing on March 15, 2022, the same date on which the impugned order was purportedly passed, without any prior record of this date being fixed for hearing. The respondent’s counsel reportedly argued, contrary to this, that the cause list showed the matter was indeed taken up on March 15, 2022, and was then listed for further consideration on April 25, 2022.
Adding to the concerns, the NCLAT pointed out that the observations and directions noted by the NCLT, Chennai, on March 15, 2022, appear to have served as the immediate basis for passing the impugned order on the very same day. The Appellate Tribunal found this sequence of events implausible, raising significant questions about the procedural integrity of the NCLT proceedings.
Given these facts and submissions, the NCLAT stated that they could not ignore the apparent irregularities in the functioning of the NCLT. Consequently, the President of the NCLT has been requested to thoroughly investigate the issue. The NCLAT specifically urged for an inquiry to ensure fairness in the NCLT’s proceedings and to maintain public confidence in the institution on these crucial matters. The President of the NCLT is expected to furnish a report on the inquiry to the Chairperson of the NCLAT in New Delhi, with a copy also directed to the Chennai Bench, for necessary further action.
FULL TEXT OF THE NCLAT JUDGMENT/ORDER
