Arun Kumar Jain Ex-Director vs Sh. Rakesh Bhatia (Liquidator Of P.K ...

Arun Kumar Jain, Ex-Director, M/s. P. K. Industries ....Appellant Pvt. Ltd. Vs. Rakesh Bhatia (Liquidator of M/s. P. K. Industries ...Respondent Pvt. Ltd.) For Appellant: Mr. Manan Batra, Advocate.

For Respondent: Mr. Sunder Khatri, Advocate for Liquidator

ORDER

(Through Virtual Mode)

05.04.2022: Heard Learned Counsel for the Appellant.

2. This Appeal has been filed against the order dated 24.03.2022 passed

by the Hon'ble President of the NCLT transferring the CP. No.-(IB) 435(ND) of

2017 from NCLT Bench-III to NCLT Bench-II to tag with CP. No.-(IB) 415 (ND)

of 2017 and CP. No.(IB) 417 (ND) of 2017. CP. No.-(IB) 415 (ND) of 2017 and

CP. No.(IB) 417 (ND) of 2017 were listed before the Bench-II. The liquidator

filed an Application that CP. No.-(IB) 435(ND) of 2017 may also be tagged

with CP. No.-(IB) 415 (ND) of 2017 and CP. No.(IB) 417 (ND) of 2017. The

President passed the order allowing the prayer and request of the Ex-

Director to postpone the hearing was declined. 2

3. Learned Counsel for the Appellant submits that he was only asked for

pass over which was declined.

4. Learned Counsel for the Appellant submits that the order was passed

for transferring from Bench-III to Bench-II which is not in accord with Rule

146 of the NCLT Rules, 2016. Rule 146 of the NCLT Rules is as follows:

"146. Disposal of Cases.- On receipt of an application, petition, appeal etc, the Tribunal, after giving the parties a reasonable opportunity of being heard, pass such orders thereon as it thinks fit:

Provided that the Tribunal, after considering an appeal, may summarily dismiss the same, for reasons to be recorded, if the Tribunal is of opinion that there are no sufficient grounds for proceedings therewith."

5. The power which has been exercised by the President is under Rule 16

(d) of the NCLT Rules, 2016. Rule 16 of the NCLT Rules provides as follows:-

"Functions of the President.- In addition to the general powers provided in the Act and in these rules the President shall exercise the following powers, namely:-

(a) preside over the consideration of cases by the Tribunal;

(b) direct the Registry in the performance of its functions;

(c) prepare an annual report on the activities of the Tribunal;

Comp. App. (AT) (Ins.) No. 365 of 2022 3

(d) transfer any case from one Bench to other Bench when the circumstances so warrant;

(e) to withdraw the work or case from the court of a member.

(f) perform the functions entrusted to the President under these rules and such other powers as my be relevant to carry out his duties as head of the Tribunal while exercising the general superintendence and control over the administrative functions of the Members, Registrar, Secretary and other staff of the Tribunal"

6. It is prerogative of the President of NCLT to assign a matter to a

particular Bench or tag with any other matter. The power under Rule 16(d)

has been exercised by the President. We do not find any merit in the

submissions of the Counsel for the Appellant that the order is passed under

Rule 146 and opportunity is required to be given before passing the order

tagging the case with other two matters. Present is not a case where power

has been exercised under Rule 146. The power has been exercised by the

President under Rule 16(d). We, thus, are of the view that the submission of

the Appellant that he was entitled for opportunity under Rule 146 before

disposal of the Application does not have any merit.

7. We do not find any ground to interfere with the impugned order of the

President by which the CP. No.-(IB) 435(ND) of 2017 has been tagged with

Comp. App. (AT) (Ins.) No. 365 of 2022 4

other two IBs which are listed in Court-II and relate to sister concern of

Appellant. The Appeal is dismissed.

[Justice Ashok Bhushan] Chairperson

[Dr. Alok Srivastava] Member (Technical)

[Shreesha Merla] Member (Technical)

Anjali/nn

Comp. App. (AT) (Ins.) No. 365 of 2022