2024 (2) TMI 676 - AT - Insolvency and Bankruptcy

Right of counsel to communicate with the Court except by filing appropriate application(s) and affidavit(s) in the proceeding pending before the Court - Influencing the decision-making process. - interference with the judicial proceedings pending in the Court - HELD THAT - The Hon ble Supreme Court in its Judgment in O.P. Sharma Ors. Vs. High Court of Punjab and Haryana 2011 (5) TMI 1123 - SUPREME COURT had quoted Bar Council of India Rules which contains a duty to the Court by a professional. One of the rule 3 of Section 1 under heading duty to the court is relevant. The proceeding before a Court or a Tribunal between the parties are proceeding which are conducted in the open court in a transparent manner. Both the parties are fully entitled to make their respective submissions, file their pleadings after serving the copy of the pleadings to other side. Justice P.B. Gajendragadkar, C.J. speaking on behalf of Constitution Bench in Naresh Shridhar Mirjakar and Ors Vs. State of Maharashtra and Ors. 1966 (3) TMI 77 - SUPREME COURT had emphasised that it is well settled that in general all cases brought before the Courts whether Civil, Criminal or other must be heard in open court. All proceedings have to be conducted before a Court or judicial tribunal, in open court which serves transparency and create confidence in public in the fairness, objectivity and impartiality of the justice as has been laid down by Supreme Court in the above case. It is due to above principal that private communication with the Judge by litigants or their advocates is forbidden. All the submissions, applications and affidavits and proceedings have to be filed in the Court for consideration of Court and no litigant or counsel is entitled to send any separate communication. The Order impugned is an order by which both the Members recused themselves from the matters. The Order dated 09.01.2024 recusing by both the members is subject matter of the Appeal - the decision taken by both the members to recuse themselves from the matter cannot be interfered with in exercise of our appellate jurisdiction. The President of the NCLT is master of roster. All administrative powers are vested with the President. It is always open for the Appellant or any aggrieved party to bring into the notice of the President on the administrative side to take appropriate measures with regard to the matter in question or for considering issuance of such order or direction as the President may deem fit and proper in accordance with law. Thus, no purpose shall be served in entertaining this Appeal - appeal dismissed.

Summary

Issues Involved:
1. Recusal of Members from hearing applications.
2. Alleged improper communication by counsel.
3. Transfer of matters by the President of NCLT.

Summary:

1. Recusal of Members from Hearing Applications:
The appeal was filed against an order dated 09.01.2024 by the National Company Law Tribunal (NCLT), Ahmedabad, where both members recused themselves from hearing various applications related to the Corporate Insolvency Resolution Process (CIRP) of Essar Steel India Limited. The recusal followed an email sent by the counsel for the respondent, which was deemed improper. The appellate tribunal noted that the decision of the members to recuse themselves cannot be interfered with in appellate jurisdiction.

2. Alleged Improper Communication by Counsel:
The appellant argued that the email sent by the respondent's counsel to the judicial member of NCLT was highly objectionable and constituted interference with judicial proceedings. The tribunal emphasized that private communications with judges relating to pending cases are forbidden, as per the Bar Council of India rules and Supreme Court precedents. The email dated 08.01.2024 was not part of any official court proceeding and should not have been sent directly to the judicial member.

3. Transfer of Matters by the President of NCLT:
Following the recusal, the President of NCLT transferred all related applications to Court II of the NCLT, Ahmedabad, by an order dated 17.01.2024. The appellate tribunal highlighted that the President of NCLT has the administrative authority to transfer cases and manage the roster. The tribunal concluded that no purpose would be served in entertaining the appeal, as the matter had already been appropriately reassigned.

Conclusion:
The appeal was dismissed, with the tribunal affirming the recusal of the members and the subsequent transfer of matters by the President of NCLT, stressing the importance of proper judicial conduct and the administrative powers of the President.