The Ministry of Corporate Affairs (MCA) on June 4 sent separate letters to the National Company Law Appellate Tribunal (NCLAT) and the National Company Law Tribunals (NCLTs) seeking to cancel their vacations, reports ET..The move was sparked by the NCLAT posting a notice on its website announcing a break from June 1 to July 1. The NCLTs planned to have a 15-day break..While Supreme Court Rules and various High Court Rules provide for holidays and vacations, MCA has pointed out that there is no provision for vacation under the Rules framed in 2016 for these tribunals..The NCLT Benches at Mumbai, Kolkata, Hyderabad, Bengaluru, Chennai and Ahmedabad have constituted special vacation benches for hearing urgent matters. The NCLAT also has a vacation bench that functions two days a week. A notice posted by the NCLAT states,.“Only urgent matters will be listed before the vacation Court, after necessary permission of the Hon’ble Chairperson/Member available during the vacation period.”.It has been reported by ET that the NCLAT deputy registrar wrote back on June 5, saying that the issue had been placed before the full court and that the matter will be further examined in the first week of July..The urgency expressed by the MCA gains significance in view of the long list of corporate insolvency resolution cases pending before the NCLAT, many of which have already exceeded their 270-day deadline. The NCLAT, while hearing these appeals, posted all of them for July, leaving the companies hanging with uncertainty..According to data compiled by the Insolvency and Bankruptcy Board of India (IBBI), as of March, 525 corporates were undergoing insolvency proceedings. Of these, only 12 have got resolution plans approved and 87 have moved to liquidation. In 67 cases, a review petition has been filed.
The Ministry of Corporate Affairs (MCA) on June 4 sent separate letters to the National Company Law Appellate Tribunal (NCLAT) and the National Company Law Tribunals (NCLTs) seeking to cancel their vacations, reports ET..The move was sparked by the NCLAT posting a notice on its website announcing a break from June 1 to July 1. The NCLTs planned to have a 15-day break..While Supreme Court Rules and various High Court Rules provide for holidays and vacations, MCA has pointed out that there is no provision for vacation under the Rules framed in 2016 for these tribunals..The NCLT Benches at Mumbai, Kolkata, Hyderabad, Bengaluru, Chennai and Ahmedabad have constituted special vacation benches for hearing urgent matters. The NCLAT also has a vacation bench that functions two days a week. A notice posted by the NCLAT states,.“Only urgent matters will be listed before the vacation Court, after necessary permission of the Hon’ble Chairperson/Member available during the vacation period.”.It has been reported by ET that the NCLAT deputy registrar wrote back on June 5, saying that the issue had been placed before the full court and that the matter will be further examined in the first week of July..The urgency expressed by the MCA gains significance in view of the long list of corporate insolvency resolution cases pending before the NCLAT, many of which have already exceeded their 270-day deadline. The NCLAT, while hearing these appeals, posted all of them for July, leaving the companies hanging with uncertainty..According to data compiled by the Insolvency and Bankruptcy Board of India (IBBI), as of March, 525 corporates were undergoing insolvency proceedings. Of these, only 12 have got resolution plans approved and 87 have moved to liquidation. In 67 cases, a review petition has been filed.