In a significant development, the Supreme Court of India has issued contempt notices to members of the National Company Law Appellate Tribunal (NCLAT), expressing concern about the state of affairs within the tribunal. The action stems from the Finolex Cables case, where the NCLAT bench’s actions and judgment have raised questions about transparency and adherence to established procedures.
Chief Justice of India DY Chandrachud commented, “I am not talking about Justice Ashok Bhushan (NCLAT chairperson). He is one of the most dignified judges I know… but NCLT and NCLAT have got down to a rot now. This case is an illustration of that rot.”
The Supreme Court has initiated contempt proceedings against judicial member Rakesh Kumar and technical member Alok Shrivastava, ordering them to appear in person on October 30. The court expressed its concern that the NCLAT members had failed to disclose accurate facts.
In addition to issuing contempt notices, the Supreme Court also set aside the NCLAT bench’s judgment from October 13, which had ordered the release of the annual general meeting (AGM) figures of the company. The case will now be heard by Justice Ashok Bhushan.
This move comes after the Supreme Court directed the NCLAT chairperson to conduct a probe into the matter and submit a report, resulting in the suspension of the initial judgment. The Supreme Court emphasized the need to ensure the dignity of the court was upheld and prevent parties from evading court orders through devious means.
The Supreme Court further criticized the manner in which the NCLAT had passed the order, deeming it “unbecoming of a tribunal.” It also raised concerns over the actions of Rakesh Kumar and Alok Shrivastava, suggesting that they were prima facie guilty of “falsehood.”
The dispute in question pertains to the annual general meeting of Finolex Cables and an ongoing disagreement between Prakash Chhabria and Deepak Chhabria over control of the company. The Supreme Court’s actions underscore the importance of maintaining transparency and integrity within the judicial process and highlight the need for adherence to established legal procedures.
Sources By Agencies