News Details- (Get Professional Updates on Whatsapp, Msg on 8285393786) More News

NCLAT sets aside NCLT order on making MCA party in all IBC cases

Posted Date : 26-May-2020 , 10:05:14 am | Posted By CASANSAAR print Print
In a relief to the Ministry of Corporate Affairs (MCA), the National Company Law Appellate Tribunal (NCLAT) set aside an order of the Principal Bench of the National Company Law Tribunal (NCLT) which had directed that the MCA be made a party in all cases filed under the Section 7, 9, and 10 of the Insolvency and Bankruptcy Code (IBC).

A three-member Bench of the NCLAT held that the NCLT order asking the Ministry to be made a party in all IBC cases, without giving the MCA a chance to present its side would have resulted in “serious miscarriage of justice, besides causing undue hardship”.

“In short, the impugned order making it applicable throughout the country to all the Benches of the National Company Law Tribunal is an 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,” the NCLAT said.

The Principal Bench of NCLT had, on November 22, directed that the MCA as well as the central government be made a respondent party in all cases of insolvency as well as Companies Act filed across the country. The adjudicating authority had then observed that the same was needed so that authentic records of companies undergoing insolvency are made available by the officers.

The said directions were passed by the NCLT in a case where despite repeated reminders from the tribunal, the Registrar of Companies had failed to update the master data regarding the status of the company under the IBC. #casansaar (Source - IndianExpress)

Category : MCA | Comments : 0 | Hits : 730

Search News
News By Categories More Categories