2019 (6) TMI 1579 - SC - Insolvency and Bankruptcy

Appointment of technical members in the Bench of the National Company Law Tribunal (NCLT) at Ahmedabad - grievance of the petitioners was that their matter was being heard by a Bench in which there was no technical member - HELD THAT - Ms. Meenakshi Arora learned senior counsel has raised the issue that despite judgment passed in SWISS RIBBONS PVT. LTD. AND ANR. VERSUS UNION OF INDIA AND ORS. 2019 (1) TMI 1508 - SUPREME COURT it is not the Law Ministry but the Ministry of Corporate Affairs which is ordering the appointment of the members of the NCLT. We are not going into that question in this case and leave it open for decision in an appropriate case - Application disposed off.

Summary

Issues involved:
- Grievance regarding the absence of a technical member in the Bench of the National Company Law Tribunal (NCLT)
- Interpretation of the judgment in Swiss Ribbons Private Ltd. & Anr. vs. Union of India & Ors. regarding the appointment of NCLT members by the Ministry of Corporate Affairs

Analysis:
The judgment addressed the grievance raised by the petitioners concerning the absence of a technical member in the Bench of the NCLT where their matter was being heard. The petitioners highlighted the importance of having a technical member in the Bench for the proper adjudication of their case. The Court noted that an order had been issued by the Ministry of Corporate Affairs appointing technical members in the Bench of the NCLT at Ahmedabad. Consequently, the Court disposed of the petitions with a direction that the case of the petitioners should be heard by a Bench comprising a judicial member and a technical member to ensure a balanced and comprehensive adjudication process.

Furthermore, the judgment discussed the interpretation of the judgment passed in Swiss Ribbons Private Ltd. & Anr. vs. Union of India & Ors. The petitioner's counsel pointed out that despite the judgment in the mentioned case, the Ministry of Corporate Affairs, not the Law Ministry, was ordering the appointment of NCLT members. The Court, however, decided not to delve into this specific issue in the present case and left it open for consideration in a more suitable case for a detailed decision. The Court emphasized the need for clarity and adherence to legal procedures in the appointment of NCLT members, as highlighted in the Swiss Ribbons case.

In conclusion, the judgment provided a pragmatic solution to the immediate issue raised by the petitioners by directing the constitution of a Bench with both judicial and technical members for their case. Additionally, it acknowledged the broader concern regarding the appointment process of NCLT members and left the interpretation of the relevant legal principles for future deliberation in a more appropriate case.