Supreme Court Orders Enquiry Against NCLAT Bench Over Alleged Defiance Of Its Directions
The court has directed the NCLAT chairperson to submit a report on Oct. 16.
The Supreme Court on Friday directed the chairperson of the National Company Law Appellate Tribunal to conduct an "enquiry" against a bench of the appellate tribunal to find out whether an order of the top court was breached.
The chairperson has been directed to submit a report of the enquiry by 5 p.m. on Oct. 16. The case in question pertains to an order regarding the annual general meeting of Finolex Cables Ltd.
In the morning session on Friday, the top court directed the appellate tribunal not to pass an order in the matter until the final results of the AGM were published. However, the appellate tribunal pronounced its order by 2 p.m., whereas the results of the AGM were declared at 2:40 p.m.
According to the lawyers involved in the case, the top court's order was presented before the bench of NCLAT but to no avail. The bench proceeded to pass an order regardless of the top court's directions, they said.
"If what is stated is correct, this will clearly constitute the defiance of the order of this court by the NCLAT," the apex court said.
The top court has directed the NCLAT chairperson to enquire into:
Whether the order of the top court as of Oct. 13, 2023 was drawn to the attention of the two judges.
If true, then what were the circumstances in which the tribunal proceeded to pronounce the judgment despite the clear mandate of the order of the top court.