New Delhi – The Supreme Court took a rare step on Wednesday by issuing notices to the National Company Law Appellate Tribunal (NCLAT) judicial member Rakesh Kumar and technical member Alok Srivastava for defying court orders in the Finolex Cables disputes matter. The bench, headed by Chief Justice DY Chandrachud, expressed strong displeasure at the NCLAT bench’s judgment and set it aside without examining its merits.
The case involves the annual general meeting (AGM) of Finolex Cables, which has been embroiled in a legal battle between Prakash Chhabria and Deepak Chhabria over control of the company. The Supreme Court has assigned the case to NCLAT Chief Justice Ashok Bhushan for further proceedings.
In a scathing remark, the bench stated that the NCLAT had deteriorated significantly, and its members had failed to disclose accurate facts. The bench emphasized the need for corrective action to restore the court’s dignity, asserting that parties should not be allowed to bypass the court’s orders through deceitful means.
Contempt notices against NCLAT members are rare, making this move by the Supreme Court highly significant.
In a previous order, the Supreme Court had directed the NCLAT chairperson to conduct an inquiry and submit a report regarding allegations that one of its benches had issued an order without following the top court’s directions. The apex court had instructed the NCLAT to wait for the scrutiniser’s report before declaring the results of the meeting. However, the NCLAT bench, consisting of Justice Kumar and Srivastava, went ahead and delivered the order before the scrutiniser’s report was uploaded.
The Supreme Court’s order was uploaded at 1:55 pm, and the NCLAT bench was scheduled to deliver its judgment at 2 pm. The NCLAT bench pronounced the order at 2:40 pm, despite the ongoing discrepancies.
This development highlights the need for accountability and adherence to court directives within the NCLAT. The Supreme Court’s actions to restore its authority and ensure the fair administration of justice have sparked attention within legal circles.
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