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Today, Senior Advocate Mukul Rohatgi, after informing the bench about the developments in the case, had informed the bench that all was not well at the Tribunal
Supreme Court today issued contempt notices to two members of the National Company Law Appellate Tribunal (NCLAT), New Delhi for defying its orders of status quo and pronouncing its judgment in a case pertaining to Finolex Cables.
Judicial Member Justice Rakesh Kumar and Technical Member Dr Alok Srivastava have been directed to show cause and be personally present before Court on October 30, 2023.
A bench of CJI DY Chandrachud, Justice JB Pardiwala and Justice Manoj Misra noted that this was very unbecoming of a tribunal and added there may be a larger problem within the NCLAT as well as National Company Law Tribunal (NCLT) as they have gone down a rot.
On October 13 top court had passed an order directing NCLAT to defer the pronouncement of its order in the case regarding the disclosure of results of Annual General Meeting (AGM) of Finolex Cables till the time the results of the AGM were submitted in the form of a report by the scrutinizer.
Today, the supreme court went on to set aside the order of the NCLAT which was passed against its direction of status quo and transferred the same to a bench led by NCLAT Chairperson.
Notably, after the supreme court had passed an order of status quo, it was later informed on the same day that the NCLAT had proceeded to deliver the judgment. Hearing this, court had directed NCLAT Chairperson Justice Ashok Bhushan to conduct an inquiry.
The inquiry report was placed before the bench today, in which the two NCLAT members told the NCLAT Chairperson that they were not aware of the Supreme Court's order.
Case Title: Orbit Electricals Private Limited vs. Deepak Kishan Chhabaria
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