Delhi HC seeks Centre, NCLT acting prez response on plea challenging transfer orders

Delhi High Court on Monday sought response of Centre and National Company Law Tribunal's (NCLT) acting president on a plea by its member (judicial) challenging transfer orders issued in April and May.

Justice V Kameswar Rao, who conducted hearing through video conferencing, issued tice and asked Centre, through ministries of Corporate Affairs and Law and Justice, NCLT acting president and its registrar to file ir counter affidavits on petition.

court listed matter for furr hearing on June 12. plea filed by Rajasekhar VK, member (judicial) has sought to set aside order transferring him from NCLT Mumbai to Kolkata bench.

He has also challenged two or orders by which NCLT acting president BSV Prakash Kumar has transferred himself from NCLT Chennai to Mumbai bench and transfer of eight or members, contending that orders are illegal.

acting president by April 30 and May 12 orders, had shuffled posting of NCLT members. petition, filed through advocate Vandana Sehgal, also sought a direction to appoint an eligible member as acting president, in place of Kumar.

Rajasekhar was appointed NCLT member (judicial) on May 3, 2019 and was posted to Mumbai bench.

plea has sought a status quo in respect of postings of members of NCLT till time a regular president is t appointed and that president or acting president of tribunal shall remain at principal seat, that is Delhi, in terms of statutory provisions.

plea said Kumar has only worked as a district judge and as a member of Company Law Board before being a member of NCLT and since he was t a high court judge, he was t eligible to be appointed as president, particularly, when Justice Rajesh Dayal Khare, a retired high court judge, was available and functioning as member (judicial) at NCLT, Allahabad bench.

“As acting president, Kumar cant ask for a transfer, r can he be transferred to any place, as he has to remain at principal bench at New Delhi so long as he is acting as president of tribunal,” petition contended.

plea claimed that transfer orders are in violation of statutory provisions and rules and in absence of any consultation or order passed by Central Government's Ministry of Law and Justice, orders of transfer of NCLT Members were illegal and contrary to decisions of Supreme Court.

It said transfer orders were signed by NCLT registrar who had power to do so.

It added that re were compelling circumstances for issuance of transfer orders when NCLT was functioning without a president and members could anyway t take charge of ir designated places of postings until lockdown was lifted by government.

petition has arrayed Centre, through ministries of Corporate Affairs and Law and Justice, NCLT acting president and its registrar as parties.