[Filling up NCLT Chennai vacancies] Madras High Court seeks status report, warns of action against MCA Secretary if status report not forthcoming

The Madras High Court on Tuesday asked the Central government to file a status report in three weeks' time on the steps taken by the government to fill up vacant posts in the National Company Law Tribunal (NCLT), Chennai..The interim order was passed by a Bench of Chief Justice Sanjib Banerjee and Justice PD Audikesavalu after the Centre, represented by advocate R Rajesh Vivekananthan, told the Court that steps were being taken to fill up NCLT Chennai posts within the next two weeks or so pursuant to directions issued recently by the Supreme Court. .[BREAKING] Do you want to continue Tribunals or close them down? Supreme Court warns it will summon Central govt officers if vacancies not filled.Vivekananthan today sought fifteen days' time, while informing that steps were being taken to fill up the vacancies pursuant to Supreme Court directions. .Taking this submission on record, the Court asked the Union of India to file a "status report in such regard" in three weeks' time. ."The Secretary in the Ministry of Corporate Affairs (first respondent) may be proceeded against if the status report is not forthcoming on the adjourned date," the Court cautioned while dictating the order on Tuesday. .The order was passed in a public interest litigation (PIL) petition moved by CA Venkata Siva Kumar who sought the Court's intervention to make the third Division Bench of the NCLT, Chennai functional. .The petitioner pointed out that the infrastructure for the third NCLT is already in place since 2018 and that only the adjudicatory authorities need to be appointed. .The plea further noted that there are 27 Division Benches in NCLTs across India, which require 54 adjudicating authorities. .The petition, admitted by the High Court last July, further raised concern that there were only 42 adjudicating authorities appointed at the time. In addition to the shortfall of 12 judges and the 20% shortage since August 2019, it was expected that another 6-8 Judges would retire and increase the judge' shortfall to 18 in May 2021, the petition had said..After the elevation of Prakash Kumar as the President of the NCLT, Delhi, only one judicial member has been on the two Division Benches functional at NCLT Chennai, it was further submitted. .Initially Judicial Member, Varadarajan was looking after both Benches, as per the petitioner. In June 2020, one, Sucharitha was appointed as Judicial Member in NCLT Chennai (but with an additional charge at Cuttack) in place of Prakash Kumar. However, Judicial Member Varadarajan fell sick, leaving Sucharitha as the sole Judicial Member, the petitioner had further submitted. ." ... as a result the only Judicial Member Madam Sucharitha was looking after three Benches in addition to the entire administration of NCLT Chennai Benches which were reeling under the impact of COVID-19. In the meanwhile, the Hon’ble Technical Member Retired in September 2020", the petitioner submitted..In view of these and allied concerns, the petitioner claimed that the economic interests of the country and the objects of Insolvency and Bankruptcy Code (IBC) is being jeopardised. Appearing in person today, Siva Kumar contended that IBC was meant to introduce time-bound proceedings. .Given the repeated adjournments from the NCLT and the high cost of engaging senior counsel, access to justice under Article 21 of the Constitution and Article 14 are also being violated, the petitioner contended. .The petitioner, therefore, prayed for directions to immediately operationalise the third Division Bench of NCLT Chennai and to fill up the vacant posts of adjudicating authorities, in respect of which a notification had already been issued in August 2019. .[Read Order]

[Filling up NCLT Chennai vacancies] Madras High Court seeks status report, warns of action against MCA Secretary if status report not forthcoming

Meera Emmanuel

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