2022 (4) TMI 310 - AT - Insolvency and Bankruptcy

Order for transferring from Bench-III to Bench-II - in accordance with Rule 146 of the NCLT Rules, 2016 or not - HELD THAT - It is prerogative of the President of NCLT to assign a matter to a particular Bench or tag with any other matter. The power under Rule 16(d) has been exercised by the President. There are no merit in the submissions of the Counsel for the Appellant that the order is passed under Rule 146 and opportunity is required to be given before passing the order tagging the case with other two matters. Present is not a case where power has been exercised under Rule 146. The power has been exercised by the President under Rule 16(d). Thus, the submission of the Appellant that he was entitled for opportunity under Rule 146 before disposal of the Application does not have any merit - appeal dismissed.

Summary

Issues:
Transfer of case from one NCLT Bench to another NCLT Bench for tagging with other cases - Appellant's contention on violation of NCLT Rules - President's power under Rule 16(d) of NCLT Rules - Merit of the Appellant's submissions - Upholding the President's order tagging the case with other matters.

Analysis:
The judgment pertains to an appeal against the order transferring a case from NCLT Bench-III to NCLT Bench-II to tag with other cases, as per the President's decision. The Appellant argued that the transfer was not in accordance with Rule 146 of the NCLT Rules, 2016, which govern the disposal of cases. The Appellant contended that the President's action fell under Rule 16(d) of the NCLT Rules, granting the President the power to transfer cases between benches. The Tribunal noted that the President's authority to assign a matter to a specific Bench or associate it with another matter is a prerogative. The Tribunal found no merit in the Appellant's argument that the order should have been made under Rule 146, emphasizing that the President exercised power under Rule 16(d), not requiring an opportunity for the Appellant before tagging the case with other matters.

The Tribunal highlighted that the Appellant was not entitled to an opportunity under Rule 146 before the President's decision to tag the case with related matters. The judgment clarified that the President's action was within the scope of Rule 16(d) of the NCLT Rules, granting the President the authority to transfer cases between benches as deemed necessary. Consequently, the Tribunal dismissed the appeal, affirming the President's order to tag the case with other IBs related to the Appellant's sister concern that were listed in Court-II. The Tribunal concluded that there were no grounds to interfere with the President's decision, and thus, the appeal was dismissed.