2017 (2) TMI 1509 - HC - Companies Law

Establishment of NCLT Bench in the State of Kerala - Seeking direction to continue hearing of Company Cases having jurisdiction in State of Kerala by the Hon'ble High Court till NCLT Bench is established at Ernakulam for hearing of Company Cases - seeking direction to the 1st respondent to establish NCLT Bench at Ernakulam on a time bound basis in the interest of justice - HELD THAT - While the Benches at New Delhi, Ahmedabad, Allahabad, Bengaluru, Chandigarh, Chennai, Guwahati, Hyderabad, Kolkata and Mumbai have been notified, those at the seats of other High Courts will be established in due course - Since such a decision is taken by the Government of India, proposing to establish NCLT Benches at the places wherein other High Courts are situated, in due course, he submits that necessary direction need to be issued to the Government of India. He further relies upon Annexure R1(a) dated 19.12.2016 produced along with the statement filed by the 1st respondent, Union of India and submits that in the next phase, after making the requisite infrastructure available and appointment of Members, it has been planned to constitute a Bench of NCLT at Kochi. If Government of India has proposed and planned to constitute Bench of NCLT at Kochi, and the authorities have found the infrastructure at Kochi suitable, hopefully the same will be established at an early date so as to mitigate the problem faced by the litigants in company matters - it is for the authorities concerned to verify the infrastructure and to take a decision in the matter. Since the matter is being considered by Government of India, as is clear from the records produced along with the writ petition, hopefully the grievance of the Kerala High Court Advocates' Association will be met at an early date. Petition disposed off.

Summary

Issues involved:
1. Establishment of NCLT Bench in the State of Kerala.
2. Review petition against the judgment passed in W.P.(C) No.39898 of 2016.
3. Proposed establishment of NCLT Benches by the Government of India.

Issue 1: Establishment of NCLT Bench in the State of Kerala:
The petitioners sought a Writ of Mandamus to continue hearing Company Cases in Kerala High Court until an NCLT Bench is established at Ernakulam. The Court declined to direct the establishment of an NCLT bench, stating that it is the authorities' prerogative. The Court emphasized that it cannot interfere with policy decisions and dismissed the writ petition. The Kerala High Court Advocates' Association filed a review petition seeking permission to file a review against this judgment. An interim order for maintaining status quo regarding the establishment of NCLT bench at Chennai was granted. The matter was referred to a Division Bench, which upheld the decision that the authorities concerned should decide on the establishment of NCLT benches. The Association highlighted the Government of India's proposal to establish NCLT Benches in phases, including at Kochi.

Issue 2: Review petition against the judgment passed in W.P.(C) No.39898 of 2016:
The Court found no grounds to review the judgment passed in W.P.(C) No. 39898 of 2016, which emphasized that decisions regarding NCLT bench establishment are for the authorities concerned to make. The Court reiterated that it cannot interfere with policy decisions and declined the review petition.

Issue 3: Proposed establishment of NCLT Benches by the Government of India:
The Government of India proposed establishing NCLT Benches in phases, with some already notified and others planned for future establishment. The Court noted that Kochi was planned for a future NCLT Bench, subject to infrastructure availability and appointment of Members. The Court acknowledged the efforts to verify infrastructure at Kochi for NCLT establishment, expressing hope that the grievance of the Kerala High Court Advocates' Association would be addressed promptly. The Court reiterated that decisions on infrastructure verification and establishment of NCLT Benches are the responsibility of the authorities concerned.

In conclusion, the Court upheld its decision that the establishment of NCLT Benches is at the discretion of the authorities, dismissed the review petition, and acknowledged the Government of India's phased plan for NCLT Bench establishment, including in Kochi.