The National Company Law Appellate Tribunal (NCLAT) has stayed the National Company Law Tribunal’s order directing the mandatory impleadment of the Ministry of Corporate Affairs, Government of India as a party to all the cases under the Insolvency & Bankruptcy Code as well as the Company petitions before the Tribunals.

The stay order was passed by a two-member Bench of Chairperson, Justice SJ Mukhopadhaya, Member (Judicial) Justice Bansi Lal in an appeal against the order preferred by the Central Government.

While issuing notice to the respondent, Oriental Bank of Commerce, the NCLAT observed,

“The question arises for consideration in this appeal as to whether there is any need to implead Union of India, Ministry of Corporate Affairs through the Secretary as party respondent in all the applications filed under Section 7, 9 or 10 of Part II of the Insolvency and Bankruptcy Code, 2016?..

We will also consider as to whether the Union of India is at all necessary party in a Company Petition/Appeal filed before the National Company Law Tribunal except where public interest is involved or for criminal act that may be taken up with a Special Court under Section 435 of the Companies Act, 2013..”