NCLAT Investigates Dubious NCLT Order

The National Company Law Appellate Tribunal (NCLAT) has ordered an investigation into a dubious order passed by the NCLT Chennai bench on March 15, 2022. The order raised questions about NCLT's functioning, and the NCLT President is tasked with conducting the enquiry to ensure public confidence.

The National Company Law Appellate Tribunal (NCLAT) has taken an unprecedented step by ordering an investigation into a controversial order made by the Chennai bench of the National Company Law Tribunal (NCLT) on March 15, 2022. The directive, issued by a two-member panel, highlights serious irregularities in the proceedings.

Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain emphasized the need for an enquiry to ensure transparency and maintain public trust in the judicial process. The NCLT President has been instructed to lead this investigation, with a report expected to be submitted to the NCLAT's Delhi principal bench and the Chennai bench.

This decision emerged during the consideration of a petition by Asset Reconstruction Company (India) Ltd. Although the appeal was rejected, the NCLAT couldn't overlook the questionable handling of the March 15 order. In identifying procedural gaps, NCLAT seeks to reinforce the integrity of the legal framework.

(With inputs from agencies.)