Act before all benches, so that authentic record is made available by the office for proper appreciation of the matters.
Rejecting the order, the NCLAT
said: “The impugned order making it applicable throughout the country to all the Benches of the NCLT
is untenable one and the said order suffers from material irregularity and patent illegality in the eye of Law”.
“As a logical corollary, this tribunal sets aside the impugned order dated November 22, 2019 in (IB)-939(PB)/2018 in furtherance of substantial cause of justice. Consequently, the present appeal succeeds,” said a two-member NCLAT
bench comprising Justice Venugopal M and V P Singh.
said the order was passed by the NCLT to ensure that authentic record is made available by the MCA
officers for proper appreciation of the matter but “such a wholesale, blanket and omnibus directions cannot be issued in single stroke”.
Moreover, whether “the appellant through the secretary, MCA
be impleaded as a necessary party/ even as proforma respondent before the tribunal is to be determined only on a case to case basis when the need of a given case arises for rumination of issues, which comes up before the respective Tribunals,” it added.
The government had immediately moved the NCLAT against the order and had got a stay from the appellate tribunal in the December last year.
While challenging the NCLT’s direction, the MCA has contended that to implead the central government as a proforma respondent, it is for the individual applicant to take a call on this.
And when no relief is claimed against the Union of India, it need not even be a proforma party in an application filed under the IBC, since it is an otiose one, serving no practical purpose.