HC seeks Centre, NCLT acting president's response on plea challenging transfer orders

The Delhi High Court Monday sought response of the Centre and National Company Law Tribunal's (NCLT) acting president on a plea by its member (judicial) challenging the transfer orders issued in April and May.

Justice V Kameswar Rao, who conducted the hearing through video conferencing, issued notice and asked the Centre, through ministries of Corporate Affairs and Law and Justice, NCLT acting president and its registrar to file their counter affidavits on the petition.

The court listed the matter for further hearing on June 12.

The plea filed by Rajasekhar VK, member (judicial) has sought to set aside the order transferring him from NCLT Mumbai to Kolkata bench.

He has also challenged two other orders by which the NCLT acting president BSV Prakash Kumar has transferred himself from NCLT Chennai to Mumbai bench and the transfer of eight other members, contending that the orders are illegal.

The acting president by April 30 and May 12 orders, had shuffled the posting of the NCLT members.

The petition, filed through advocate Vandana Sehgal, also sought a direction to appoint an eligible member as the acting president, in place of Kumar.

Rajasekhar was appointed NCLT member (judicial) on May 3, 2019 and was posted to the Mumbai bench.

The plea has sought a status quo in respect of postings of members of NCLT till the time a regular president is not appointed and that the president or acting president of the tribunal shall remain at the principal seat, that is Delhi, in terms of the statutory provisions.

The plea said Kumar has only worked as a district judge and as a member of Company Law Board before being a member of the NCLT and since he was not a high court judge, he was not eligible to be appointed as president, particularly, when Justice Rajesh Dayal Khare, a retired high court judge, was available and functioning as member (judicial) at NCLT, Allahabad bench.

“As acting president, Kumar cannot ask for a transfer, nor can he be transferred to any place, as he has to remain at the principal bench at New Delhi so long as he is acting as president of the tribunal,” the petition contended.

The plea claimed that the transfer orders are in violation of statutory provisions and the rules and in the absence of any consultation or order passed by the Central Government's Ministry of Law and Justice, the orders of transfer of NCLT Members were illegal and contrary to the decisions of the Supreme Court.

It said the transfer orders were signed by the NCLT registrar who had no power to do so.

It added that there were no compelling circumstances for the issuance of the transfer orders when the NCLT was functioning without a president and the members could anyway not take charge of their designated places of postings until the lockdown was lifted by the government.

The petition has arrayed Centre, through ministries of Corporate Affairs and Law and Justice, NCLT acting president and its registrar as parties.