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2024 (2) TMI 676

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..... le 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 b .....

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..... Essar Steel India Limited dated 02.08.2017 by the Adjudicating Authority. The Respondent No. 1 and 2 in the Appeal have also filed several applications. There have been series of litigation subsequent to filing of the Applications in September, 2022, the Contempt Applications were also filed by the Gujarat Operational Creditor Association (of which Respondent No. 1 is a member) and Respondent No. 2 alleging contempt of order dated 08.03.2017. The Contempt Applications were heard by Division Bench, Court I of the NCLT, Ahmedabad and by Order dated 08.01.2024, contempt Applications were rejected with cost of 25,000/- on each of the petition. On 08.01.2024, the Adjudicating Authority conducted a detailed hearing on numerous applications (approximately 36 pending applications) and fixed 26.02.2024 as a next date of hearing after conclusion of the hearing on 08.01.2024. Learned Counsel for the contesting respondent sent an email dated 08.01.2024 marked to the Register with heading for kind attention Ld. Member Judicial head of the office . The email was addressed to Ld. Judicial Member, NCLT, Ahmedabad with copy to Hon ble President, NCLT, Delhi. The email was sent on 08.01.20 .....

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..... k Khosla, Ld. Adv. For the SBI IDBI : Mr. Saurabh Soparkar, Ld. Sr. Adv. a. w. Mr. Parth Gokhle, Ld. Adv., Mr. Shalin Jani, Ld. Adv. Ms. Moulshree, Ld. Adv. I/b. Shardul Amarchand Mangaldas For the Arcelor Mittal : Mr. Mihir Thakore, Sr. Adv. a/w. Mr. Nirag Pathak, Adv. :Ms. Ruby Singh, Adv. Ms. Manisha Narsinghani, Adv. :Mr. Vishal Gehrana, Adv. Mr. Varun Khanna, Adv. :Mr. Aakriti Vohra, Adv. Mr. Raheel Patel, Adv. ORDER Both the Members recuse themselves from these matters. The Joint Registrar is directed to place these matters before the Hon ble Principal Bench for Administrative order in these matters. - Sd - - SAMEER KAKAR MEMBER ( JUDICIAL ) Sd - SHAMMI KHAN MEMBER ( TECHNICAL ) 3. Aggrieved by the Order dated 09.01.2024, this Appeal has been filed. 4. In the synopsis of the Appeal, Appellant states as follows : SYNOPSIS The present Appeal is being filed by the Appellant under Section 61 (1) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the Code ) challenging the Order dated 09.01.2024 (hereinafter referred to as the Impugned Order ) passed by the Hon'ble Nat .....

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..... matter. The Impugned Order, followed by the consequential directions dated 17.01.2024 by Hon'ble President, NCLT, of transferring the matters from Court No. 1 to Court No. 2 of the Ld. Adjudicating Authority has created an unfortunate and a dangerous precedent. The conduct of the Contesting Respondents (and certain other parties) as well as its Counsel, appears to deliberately prejudice the judicial proceedings and cause mala fide interference with the administration of justice and unfair prejudice to the judicial proceedings. The actions are nothing but an act of bench hunting and forum shopping. Therefore, it is in the fitness of things that this Hon'ble Appellate Tribunal must deprecate the said action and set aside the Impugned Order of recusal so that majesty of Courts is protected and such litigants who indulge in such blatant and brazen bench hunting and/ or forum shopping may be restrained from doing so. Hence, the present Appeal. 5. Mr. Mukul Rohtagi, Learned Sr. Counsel appearing on behalf of the Appellant submits that the Division Bench, Court I hearing different application recused themselves due to the email dated 08.01.2024 sent at 2:31PM by .....

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..... 3. An advocate shall not influence the decision of a court by any illegal or improper means. Private communications with a judge relating to a pending case are forbidden. 9. 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 AIR 1967 SC 1, Naresh Shridhar Mirjakar and Ors Vs. State of Maharashtra and Ors. 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. In paragraph 20 of the Judgment, following has been laid down: 20. Before dealing with this question, it is necessary to refer to one incidental aspect of the matter. It is wellsettled that in general, all cases brought before the Courts, whether civil, criminal, or others, must be heard in open court. Public trial in open court is undoubtedly essential for the healthy, objective and fair .....

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..... mselves from the matters. The Order dated 09.01.2024 recusing by both the members is subject matter of the Appeal. We after perusing the order dated 09.01.2024 are of the view that the decision taken by both the members to recuse themselves from the matter cannot be interfered with in exercise of our appellate jurisdiction. Members having been recused themselves, we are unable to grant any relief to the Appellant as against the order dated 09.012024. 13. We further notice that by a subsequent order passed by the President dated 17.01.2024 as extracted above, the matter has already been transferred to Court II of the NCLT, Ahmedabad. 14. Under the NCLT Rules, 2016, the powers and functions of the President are enumerated. Rule 16 of NCLT Rules, 2016 provides as follows: 16. Functions of the President. In addition to the general powers provided in the Act and in these rules the President shall exercise the following powers, namely:- (a) preside over the consideration of cases by the Tribunal; (b) direct the Registry in the performance of its functions; (c) prepare an annual report on the activities of the Tribunal; (d) transfer any case from one Be .....

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