Supreme Court questions using NCLT website orders as certified copies for NCLAT appeals, leading to notice issuance by Justices Sanjiv Khanna and Dipankar Datta.
Thank you for reading this post, don't forget to subscribe!
NEW DELHI: Recently, The Supreme Court has expressed reservations regarding the utilization of orders copied from the National Company Law Tribunal (NCLT) website as certified copies for appeals filed before the National Company Law Appellate Tribunal (NCLAT). This concern was raised before a Bench comprising Justices Sanjiv Khanna and Dipankar Datta on May 6, leading them to issue a notice in the case.
The court stated-
“We are also inclined to issue notice to the Insolvency and Bankruptcy Board of India, as there appears to be considerable ambiguity concerning the service of orders passed by the National Company Law [Appellate] Tribunal, the uploading of orders on the website, and the requirement to obtain a certified copy of the order and enclose it with the appeal.”
The Insolvency and Bankruptcy Board of India (IBBI) has been called upon to examine the current process of filing appeals and determine whether any modifications, clarifications, or simplifications are required. This aims to address the concerns raised by the appellants, who had their appeals dismissed due to the absence of applications seeking exemption from filing a certified copy of the NCLT order.
ALSO READ: Gujarat High Court Directs NCLT Ban on Electronic Devices During Hearings
The appeal in question pertains to the insolvency proceedings of Soni Realtors Private Limited, a corporate debtor involved in the residential township project named ‘Palm City’ in Karnal, Haryana. The appellants, represented by Senior Advocate Ritin Rai and a team of advocates including Rahul Kumar, Debmalya Ganguli, and Gopal Singh, sought to challenge the dismissal of their appeal.
This matter has been combined with another appeal arising from a recent NCLAT order in the case of Sanjay Kumar Bansal, further adding to its significance.
The Supreme Court’s decision to seek clarity on the status of copies of NCLT orders as certified copies for filing appeals before the NCLAT is an important step towards addressing the prevailing ambiguity in the process. By involving the IBBI in this matter, the Court aims to ensure a fair and transparent system that facilitates the smooth processing of appeals without unnecessary hurdles.
The need for clarification arises from the confusion surrounding the service of orders passed by the NCLAT, the uploading of orders on the NCLT website, and the requirement to obtain certified copies of the orders for appeal purposes. These issues have caused inconvenience and complications for appellants, as evidenced by the dismissal of their appeals due to the absence of applications seeking exemption from filing certified copies.
The IBBI’s review of the current process will provide insights into the essential adjustments, clarifications, or simplifications needed to streamline the appeals filing process before the NCLAT. This would not only aid the appellants but also enhance the overall efficiency and effectiveness of the insolvency and bankruptcy resolution framework.
With the involvement of Senior Advocate Ritin Rai and a team of dedicated advocates, led by Manan Chopra, the appellants have presented a strong case before the Supreme Court.
ALSO READ: Investor Group Approaches NCLT Bengaluru Against Byju’s Alleging Mismanagement
CASE TITLE:
Manan Chopra and ors vs Soni Realtors Pvt Ltd.