NCLAT Calls for Investigation into NCLT's 'Dubious' Order

The National Company Law Appellate Tribunal (NCLAT) has ordered an investigation into a controversial order passed by the Chennai bench of the NCLT regarding Regen Powertech's insolvency. The investigation was prompted by suspicions over the procedural legitimacy of the order, raising concerns about NCLT's functioning.

The National Company Law Appellate Tribunal (NCLAT) has raised the alarm over an order issued by the Chennai division of the National Company Law Tribunal (NCLT), instructing a comprehensive investigation into the potentially dubious procedural elements of the decision.

The case involves Regen Powertech and was initially brought forth by Asset Reconstruction Company (India) Ltd, which moved to file claims accepted by the NCLT. Notwithstanding, the petitioner opted not to pursue the case, leading NCLAT to close the matter. However, it simultaneously mandated NCLT's President to initiate a probe into the order's passage process.

Expressing substantial concern, NCLAT noted the absence of proper listing for the day the order was pronounced, underlining the need for an inquiry to sustain public confidence. Furthermore, it sought a report of the findings to be sent to the NCLAT's principal bench in Delhi, ensuring transparency in the proceedings.

(With inputs from agencies.)