Water Seepage Forces NCLT Chandigarh to Suspend Sittings; Punjab and Haryana High Court Directs Alternative Space

Water Seepage Forces NCLT Chandigarh to Suspend Sittings; Punjab and Haryana High Court Directs Alternative Space

Introduction

The Punjab and Haryana High Court has directed the Chandigarh administration to search for an alternative space for the National Company Law Tribunal (NCLT) Chandigarh, which has suspended its sittings indefinitely due to water seepage from the roof in courtrooms and judges' chambers.

Factual Background

The NCLT Chandigarh building was experiencing severe water seepage, affecting courtrooms and judges’ chambers, which led to the suspension of its sittings. This issue was initially raised in a public interest litigation (PIL) filed in 2023 by the Company Law Tribunal Bar Association, highlighting the problem of waterlogging and damage to the Tribunal's infrastructure.

Procedural Background

The Punjab and Haryana High Court heard the PIL and was informed about the NCLT's indefinite closure for repairs. The court directed the Chandigarh administration to search for an alternative space for the NCLT to continue functioning while repairs are carried out.

Issues

1. Whether the NCLT Chandigarh can continue functioning in its current state given the water seepage?

2. Whether the Chandigarh administration is responsible for providing alternative space for the NCLT?

Contentions of the Parties

• Petitioner’s Contention: The Company Law Tribunal Bar Association argued that the water seepage and damage to the building are adversely affecting the NCLT's functioning.
• Respondent’s Contention: The Union of India informed the court that new contractors have been appointed to repair the building and that the repairs would require approximately 30 days to complete. The ASG noted that repairs cannot proceed while the Tribunal is functioning.

Reasoning and Analysis

A Division Bench of Chief Justice Sheel Nagu and Justice Sanjiv Berry observed that alternative arrangements must be made for the Tribunal to continue functioning. The court directed the Chandigarh administration to identify an alternative space for the NCLT within three days.

Implications

This order underscores the importance of providing a safe and functional workspace for the judiciary. The court's direction ensures that the NCLT can continue its proceedings without disruption.

Outcome

The Chandigarh administration is directed to secure alternative premises for the NCLT within three days, and the matter is listed for further hearing on August 25, 2025.

Representation

In this case the petitioner was represented by Mr. Anand Chhibbar, Senior Advocate and Mr. Shikhar Sarin, Advocate. Meanwhile the respondent was represented by Additional Solicitor General (ASG) Satyapal Jain.