NCLAT: Legal Framework necessary for Supervisory Jurisdiction over NCLTs
The National Company Law Appellate Tribunal (NCLAT) opined in the case titled Surinder Kaur & Ors. (Appellants) v. International Recreation and Amusement Ltd. (Respondent) that there is a need to vest in it the power of superintendence and control over the National Company Law Tribunals (NCLTs).
The NCLAT two-member bench consisting of Justice Bansi Lal Bhat (Acting Chairperson) and Dr. Ashok Kumar Mishra (Technical Member) passed the order in view of many appeals before it in relation to repeated adjournments by NCLTs.
The order of the NCLAT reads that "There is need to introduce a provision in the legal framework to vest the power of superintendence and control qua National Company Law Tribunals (NCLT) in this Appellate Tribunal. Due to lack of supervisory jurisdiction many aggrieved persons are compelled to adopt the route of filing the appeal though there is no order on merit."
The litigation background of the case is that an appeal was filed before the Appellate Tribunal regarding a Resolution Plan under the Insolvency & Bankruptcy Code, 2016 (IBC). The Resolution Plan was pending since 2019 for approval before the Adjudicating Authority i.e. NCLT, Principal Bench.
The appellant being aggrieved with the frequent adjournments by the NCLT approached the Appellate Tribunal. It was stated that the matter listed before the NCLT had been adjourned approx. 18 times.
The Appellate Tribunal remarked that "This is not the first case of such nature." It further noted that there was no order on merit in the present appeal and even the date on which the matter was posted for hearing before the NCLT had elapsed.
The NCLAT disposed of the appeal and it gave a direction to the NCLT to take a call and pass an order on merit regarding the Resolution Plan that is pending for consideration before the Tribunal within two weeks.