Delhi HC seeks Centre's response on PIL challenging appointment of NCLAT chairperson

Delhi High Court Tuesday sought Centre's response on a plea against appointment of former Jammu and Kashmir High Court judge Justice B L Bhat as officiating chairperson of National Company Law Appellate Tribunal (NCLAT). petitioner had challenged tification of Ministry of Corporate Affairs, dated March 12, by which it had appointed Justice (retd) Bansi Lal Bhat as officiating Chairperson of NCLAT.

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Delhi HC seeks Centre's reply

plea, filed by lawyer Fozia Rehman through senior advocate Rajeev Virmani and M Qayam-Ud-Din stated that tification mentioning appointment of Bhat violated Company law and provisions of Tribunal, Appellate Tribunal and or Authorities (Qualifications, Experience and or Condition of Service of Members) Rules, 2020.

Rahman argued that if such appointments are made arbitrary without following laws n public will lose faith in judiciary and weaken  separation of powers and independence of judiciary.

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petition read, " Rules where entitles Central Government to overlook 'seniority' in case of appointment of a member (in absence of vice chairman or vice president) to officiate as Chairperson, Chairperson, President or Presiding OfficerThus, senior-most member of Hon'ble NCLAT, wher s/he be a technical member or a judicial member, ought to have been appointed to officiate as Chairperson."

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petition argued that as per Companies Act, when post of chairperson of a tribunal is vacant, senior most member shall act as officiating chairperson till a suitable person is appointed. It added, that Central government did t consider  senior-most member of NCLAT is Balvinder Singh, Member (Technical) appointed on July 1, 2016, and that Member (Judicial) Justice AIS Cheema appointed on September 11, 2017, are also senior to Member (Judicial) Justice Bansi Lal Bhat appointed on October 17, 2017. 

Delhi HC will be hearing case again on June 30. 

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(With inputs from ncies)