9911796707
TMI Blog2022 (11) TMI 1468X X X X Extracts X X X X X X X X Extracts X X X X ..... section 7, 9 or 10 of the Code is heard by a bench comprising of two members of the Tribunal till the date it was reserved by a single bench who ultimately pronounced the order is in violation of the provisions of Section 419(3) of the Act? HELD THAT:- A bare reading of Section 419(3) of the Act provides that the powers of the Tribunal is to be exercised by benches having strength of two members out of whom one shall be a Judicial Member and the other a Technical Member. However, in order to meet the exigency, there is a proviso to this section which says that, a member of the Tribunal, who is authorized by the President to function as a bench, consisting of single Judicial Member bench, in order to exercise the powers of the Tribunal in r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant : Mr. Shankari Mishra , Ms. Niharika Tanwar , Advocates For Respondents : Mr. Riju Mani Talukdar , Mr. Pawan Kumar Ray , Adv. for R2 ORDER Per : Justice Rakesh Kumar Jain : This appeal is against the order dated 17.08.2020, filed by one of the director of the suspended board of directors of the Corporate Debtor, being aggrieved against the admission of the application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (in short Code ) by the Operational Creditor (Creative Infraheights Pvt. Ltd.) 2. Counsel for the Appellant, at the outset, has challenged the validity of the impugned order on the ground that it has been passed by a single member (Judicial Member) though the entire matter was heard by two members (Judicia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r passed by a Judicial Member alone is against the law. 5. She has further argued that even otherwise, in exercise of the powers provided in Section 419 of the Act, the Central Govt. notified the rules for NCLT, 2016 on 01.06.2016 to lay down the procedure for regulation of the Tribunal in which there is no such rule that the matter is heard continuously by a bench comprising of Judicial Member and Technical Member, in compliance of Section 419(3) and then suddenly the order is reserved by the Judicial Member alone. It is submitted that there are only two provisions in the Rules pertaining to the pronouncement of the order by any one member of the bench and also by authoring any member to pronounce the order but there is no such rule as per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal till the date it was reserved by a single bench who ultimately pronounced the order is in violation of the provisions of Section 419(3) of the Act? 10. Since, the facts are not disputed, therefore, it is relevant to refer to law much less Section 419 of the Act, which is reproduced as under:- Section 419: Benches of Tribunal. *419. (1) There shall be constituted such number of Benches of the Tribunal, as may, by notification, be specified by the Central Government. (2) The Principal Bench of the Tribunal shall be at New Delhi which shall be presided over by the President of the Tribunal. (3) The powers of the Tribunal shall be exercisable by Benches consisting of two Members out of whom one shall be a Judicial Member and the other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ajority of Members who have heard the case, including those who first heard it. 11. A bare reading of Section 419(3) of the Act provides that the powers of the Tribunal is to be exercised by benches having strength of two members out of whom one shall be a Judicial Member and the other a Technical Member. However, in order to meet the exigency, there is a proviso to this section which says that, a member of the Tribunal, who is authorized by the President to function as a bench, consisting of single Judicial Member bench, in order to exercise the powers of the Tribunal in respect of a particular class of cases or particular matters pertaining to such class of cases. However, it has to be only by a general or special order passed by the Pres ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
