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

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

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Delhi HC seeks Centre's reply

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

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

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The petition read, "The Rules nowhere entitles the 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, the senior-most member of the Hon'ble NCLAT, whether s/he be a technical member or a judicial member, ought to have been appointed to officiate as Chairperson."

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The petition argued that as per the Companies Act, when the post of chairperson of a tribunal is vacant, the senior most member shall act as officiating chairperson till a suitable person is appointed. It added, that the Central government did not consider the 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 the case again on June 30. 

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(With inputs from agencies)