Judicial Member of NCLT, Rajasekhar VK moves HC against transfer orders of Members issued by Acting NCLT President

On Friday, Rajasekhar VK, Member (Judicial), National Company Law Tribunal (NCLT) has moved Delhi High Court challenging the transfer orders issued by BSV Prakash Kumar, Acting President of National Company Law Tribunal in April and May.

Aggrieved with the Acting President's decision, he has sought a direction in his plea to appoint an eligible Member in place of BSV Prakash Kumar.

The Acting President had shuffled the posting of the NCLT Members in its Apriln 30 and May 12 orders.

In the orders issued, while the Petitioner was transferred from NCLT Mumbai to NCLT Kolkata, the Acting President had transferred himself from NCLT Chennai to NCLT Mumbai.

The petitioner has regarded these transfer orders as illegal, malicious, biased and without any jurisdiction.

He has contended that the transfer orders are in violation of statutory provisions and the rules of transfers, specifically Rule 15A of NCLT (Salary, Allowances & other Terms and Conditions of Service of President and other Members) Rules, 2015.

It is stated that in the absence of any consultation/order passed by the Central Government, through the Minsitry of Law & Justice, the orders of transfer of NCLT Members were illegal and contrary to the decision of the Supreme Court in UOI vs Madras Bar Association.

He pointed that transfer orders were signed by the Registrar, NCLT who had no power to do so. He further stated 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 new offices due to the lockdown. He also raised grievance with respect to Acting Chairperson's absence from the Principal Bench.

The Petitioner has said that in terms of Section 419(2) of the Companies Act, 2013, the President ought to preside over the Principal Bench at New Delhi.

Sidling the presiding law,  Acting President first held court from Chennai and then transferred himself to Mumbai, said the petitioner.

He, therefore has sought appointment of an eligible Member as the Acting President, in place of BSV Prakash Kumar while further submitting that Kumar only worked as a District Judge and then as a Member of Company Law Board before being made a Member of the NCLT.

He added that since he was not High Court Judge, he was not eligible to be appointed as President, particularly, when Justice Rajesh Dayal Khare, retired High Court Judge, was available and functioning as a Member(Judicial) at NCLT Allahabad.

Stating above, the Petitioner pleaded that status quo in respect of posting of NCLT Members be maintained till the time a President is appointed and the transfer orders issued by the Acting president be set aside.