Delhi High Court disposes of challenge to transfer of NCLT Members; Rajasekhar VK accepts transfer to Kolkata

The Court said that all question of law were kept open.
Delhi High Court disposes of challenge to transfer of NCLT Members; Rajasekhar VK accepts transfer to Kolkata
Delhi High Court

The Delhi High Court has disposed of the plea challenging the transfer orders of NCLT Members issued by BSV Prakash Kumar, Acting President after the Petitioner, Rajasekhar VK, Member (Judicial) accepted his transfer. (Rajasekhar VK vs UOI)

After recording the submission of the parties, a Single Judge Bench of Justice Navin Chawla stated,

"Be that as it may, the Petitioner has accepted his transfer. Thus the petition is disposed of keeping all question of law open."

The Court opined that it did not deem it appropriate to consider the questions of law raised in the present petition.

The Court added that the Petitioner shall not be prejudiced by the disposal of the present petition.

Without prejudice to his rights and contentions, Rajsekhar VK chose to abide by the transfer order in view of the fact that the sole member at new posting i.e. NCLT Kolkata had retired during the pendency of the petition.

Delhi High Court
Rajasekhar VK, Member (Judicial), NCLT moves Delhi HC against transfer orders of NCLT Members issued by Acting President

Vide orders issued on April 30 and May 12, the Acting President had shuffled the posting of the NCLT Members.

The Petitioner was transferred to NCLT Kolkata from NCLT Mumbai.

It was the Petitioner's case that these transfer orders were illegal, malicious, biased and without any jurisdiction.

Petitioner contended that the transfer orders were in violation of statutory provisions and the rules of transfers, specifically Rule 15A of NCLT (Salary, Allowances & other Terms and Conditions of Service of President and other Members) Rules, 2015.

Rajesh Dayal Khare, Member (Judicial) subsequently intervened in the petition and contended that BSV Prakash Kumar was not eligible to act as the Acting President in terms of Section 409 of the Companies Act, 2013.

An order of no coercive action was also passed in favour of the Petitioner who had refused to join the new posting.

During the course of the hearings, the Court had noted that the case raised an important question as to how the inter se seniority amongst different classes of Members was to be determined, especially in case of any vacancy in the office of the President of the NCLT.

Advocates Abhijeet Sinha, Vandana Sehgal appeared for Rajasekhar.

Khare was represented by Advocate SD Singh.

Centre was represented by ASG Chetan Sharma and Advocate Harish V Shankar.

Read the Order:

Rajasekhar order dated 19.11.2020.pdf

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