Need legal provisions to have superintendence, control over NCLT: NCLAT

Topics NCLAT | NCLT | Indian companies

The National Company Law Appellate Tribunal (NCLAT) has said that there is a need to introduce a provision granting it supervisory power over the NCLTs across the country.

Due to lack of such powers under the present laws, several people who are aggrieved by the National Company Law Tribunal (NCLT) are compelled to approach it by filing an appeal before it.

The appellate tribunal observation came while passing an order passed over a petition filed by the resolution professional (RP) of International Recreation and Amusement, who was aggrieved of frequent adjournments being granted by the NCLT and re-notifying the matter time and again.

According to RP, a resolution plan is pending approval before the Delhi bench of NCLT since 2019 and the matter has been adjourned as many as 18 times.

"This is not the first case of such nature," said a two-member NCLAT bench headed by Acting Chairperson Justice B L Bhat.

The appellate tribunal further said: "There is a need to introduce a provision in the legal framework to vest power of superintendence and control qua National Company Law Tribunals in this Appellate Tribunal.

"Due to lack of supervisory jurisdiction many aggrieved persons are compelled to adopt the route of filing the appeal though there is no order on merit," it said.

NCLAT has directed NCLT to "take a call and pass an order on merit in regard to the Resolution Plan pending consideration before it within two weeks".

It has asked to send a copy of this order to the NCLT.

NCLT had initiated an insolvency process against International Recreation and Amusement, which had operated India's first Amusement Park "Appu Ghar", which was triggered on August 3, 2018.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel