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2017 (11) TMI 165 - HC - Companies LawDirection to appoint a TECHNICAL MEMBER at National Company Law Tribunal, Ahmedabad Bench - Held that - At the first instance, Notification was issued by constituting Bench with two members viz. Member (Judicial) and Member (Technical) at Ahmedabad. But subsequently, exercising powers conferred under proviso to Section 419 of the Companies Act, 2013, order dated 12.08.2016 is passed constituting Bench at Ahmedabad with only Member (Judicial). Reading of the provisions referred in Section 419 of the Companies Act, it empowers the President to constitute the Bench with only one member. If there is any difficulty, it is open for the petitioner to make representation, but at the same time, we do not find any reason to entertain the petition at this stage. While granting liberty to the petitioner to file representation before the President of National Company Law Tribunal, this petition is disposed of. It is made clear that in the event of any further difficulty, liberty is granted to the petitioner to approach this Court.
Issues:
1. Appointment of a "TECHNICAL MEMBER" at National Company Law Tribunal, Ahmedabad Bench in accordance with the Companies Act, 2013. 2. Discharge of functions effectively by the Member (Judicial) alone. 3. Powers of the President to constitute the Bench with only one member under Section 419 of the Companies Act, 2013. 4. Petitioner's right to make representation before the President of National Company Law Tribunal. Issue 1: Appointment of a "TECHNICAL MEMBER" The writ petition filed as a public interest litigation sought the appointment of a "TECHNICAL MEMBER" at the National Company Law Tribunal, Ahmedabad Bench in compliance with the provisions of the Companies Act, 2013. Initially, the Tribunal constituted a Bench with two members, including a Member (Judicial) and a Member (Technical). However, a subsequent order was issued constituting a Bench at Ahmedabad with only the Member (Judicial). The petitioner argued that the nature of work at the Tribunal required the inclusion of a Member (Technical) to effectively discharge functions. Issue 2: Discharge of functions effectively by the Member (Judicial) alone The petitioner contended that the presence of a Member (Technical) was essential for the effective discharge of functions at the National Company Law Tribunal, emphasizing the specialized nature of the work. The petitioner raised concerns regarding the ability of the Member (Judicial) alone to handle the workload and complexities involved in the cases brought before the Tribunal. Issue 3: Powers of the President under Section 419 of the Companies Act, 2013 The Court noted that under Section 419 of the Companies Act, 2013, the President of the National Company Law Tribunal had the authority to constitute a Bench with only one member if deemed necessary. The Court highlighted that the Act empowered the President to make such decisions, and if there were any difficulties or objections, the petitioner had the right to make a representation before the President. The Court found no reason to entertain the petition at that stage and granted the petitioner liberty to file a representation before the President. Issue 4: Petitioner's right to make representation The Court disposed of the petition while granting the petitioner the liberty to file a representation before the President of the National Company Law Tribunal. It was clarified that in case of any further difficulties or objections, the petitioner had the option to approach the Court for redress. The judgment emphasized the importance of following the procedures outlined in the Companies Act, 2013 and the right of the petitioner to seek appropriate remedies through due process. This detailed analysis of the judgment from the Gujarat High Court highlights the issues raised in the petition regarding the appointment of a "TECHNICAL MEMBER" at the National Company Law Tribunal, Ahmedabad Bench, and the Court's decision regarding the powers of the President under the Companies Act, 2013, along with the petitioner's right to make representations for redressal.
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