NCLT, NCLAT free to regulate virtual hearings as long as link requests considered in fair, transparent non-arbitrary manner: Delhi High Court

The Delhi High Court today opined that the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) are free to regulate their own procedure for virtual hearings as long as they ensure that requests for links were considered in a fair, transparent and non-arbitrary manner (Deepak Kholsa vs National Company Law Appellate Tribunal & ors). .A order was passed by a single-judge Bench of Justice Prathiba M Singh. "It is directed that NCLT, NCLAT may regulate their own procedure for video conferencing platforms so long as it ensured that if any particular party requests a link, the same is considered in a fair, transparent and non-arbitrary manner. To the extent possible, the parties would be permitted to view the proceedings," the Court said. .The Court added that such parties are expected to follow the discipline of virtual hearings and not cause unnecessary disturbance..The Court was dealing with advocate Deepal Khosla's (petitioner) petition to make virtual hearings at NCLTs and NCLAT accessible to the public including advocates who are not involved in the case being heard..Emphasising that the two tribunals were open courts, the petitioner stated that he wished to follow the proceedings in the Delhi Gymkhana matter and other proceedings of interest. .In response to the petition, the Deputy Registrar, NCLAT filed an affidavit stating that in order to regulate the conduct of virtual hearings and maintain discipline, it was necessary to regulate access of parties to hearing links..The Court was informed that whenever links of NCLT or NCLAT hearings were required, the same were provided to the parties in the form of "active links" and "viewing links"..Reliance was placed on the SoP issued by the Supreme Court which also provides for restricted access to hearings even to advocates. .Additional Solicitor General Chetan Sharma added that presently, the NCLT and NCLAT were using bandwidth of almost 100 mbps. ."This court is of the opinion that forums like the NCLT and NCLAT, which have high quantum of work, in virtual mode, ought to be permitted o regulate their own procedure. So long as the same is not arbitrary," the Court said after considering rival submissions. .The Court noted that virtual hearings were only an ad-interim measure and very soon physical hearings would begin at the two tribunals. .In view of the above and the fact that the Delhi Gymkhana proceedings before the NCLAT were over, the Court allowed the petitioner to make specific requests to NCLT, NCLAT by writing an email to the registrar concerned who may consider it in a fair manner.