2021 (3) TMI 377 - HC - Companies Law

Seeking provision of open or virtual links for attending hearings in the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) - case of the Petitioner is that the NCLT and NCLAT ought to have an open link where parties who are interested can join the proceedings - HELD THAT - It is directed that the NCLT and NCLAT may regulate their own procedure for virtual hearing platforms so long as it is ensured that if any particular party requests for a link, the same is considered in a fair, transparent and non-arbitrary manner. To the extent possible, parties would be permitted to view the proceedings. Those parties who join the proceedings are expected to maintain the discipline of virtual hearing and not cause unnecessary disturbance during the same. The affidavit filed, in any case states that very soon, the NCLAT would also start physical hearing of matters. Since virtual hearings are a measure adopted to ensure that Tribunals and Courts are functioning during the COVID-19 pandemic, the Petitioner, if he wishes to join any particular hearing, may write an e-mail at least 24 hours in advance to the Deputy Registrar of the NCLT and NCLAT. The same shall be considered in accordance with the NCLT and NCLAT s own procedure, in a fair, transparent and non-arbitrary manner. Petition disposed off.

Summary

Issues:
Petitioner seeking provision of open or virtual links for attending hearings in the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT).

Analysis:
The Petitioner filed a petition requesting open or virtual links for attending NCLT and NCLAT hearings, emphasizing the need for transparency and access for interested parties. The Petitioner's counsel argued that the use of the CISCO Webex platform should align with the concept of an 'open Court'. The prayer in the writ petition sought mandamus to allow the Petitioner to witness specific proceedings and to provide links from the start of court hours. The NCLT and NCLAT, represented by the Deputy Registrar, highlighted the bandwidth capacity and the necessity to regulate links for virtual hearings to maintain discipline. The ASG referred to a Supreme Court circular on regulating virtual hearings and emphasized the need for a similar procedure in the tribunals.

The Court, after reviewing the affidavits and arguments, acknowledged the need for regulated entry in virtual hearings to prevent disturbances. The NCLT and NCLAT's concern about separate 'active' and 'viewing' links, potential disruptions from unlisted matters, and the disposal of the Delhi Gymkhana Club case were noted. The judgment directed the tribunals to regulate their procedures for virtual hearings to ensure fair consideration of link requests and transparency. Parties joining the proceedings were instructed to maintain discipline and avoid unnecessary disruptions.

Furthermore, the judgment addressed the transition to physical hearings by NCLAT in the future, indicating that virtual hearings were a COVID-19 response measure. Parties interested in specific hearings were advised to email the Deputy Registrar at least 24 hours in advance for consideration following the tribunals' procedures. The petition was disposed of based on the above terms, including the resolution of pending applications.