The Rajasthan High Court recently comprising of a bench of Justice Ashok Kumar Garg issued notice to the Jaipur Bench of the National Company Law Tribunal (NCLT) while adjudicating upon an appeal against an order of the NCLT refusing the petitioner's request to allow physical hearing.(Dalas Biotech Ltd. v. Farmasino Pharmaceuticals)
Facts of the case
The petitioner's application for seeking physical hearing of the case had been dismissed by the NCLT on the ground that there is no Standard Operating Procedure laid down for physical hearings with respect to the infrastructure and facilities available at the Jaipur bench of NCLT.
Contention of the Parties
The petitioner submitted that the Supreme Court as well as different High Courts including Rajasthan High Court have already started the hybrid system of hearing matters either by physical mode or by virtual hearing.
It was also contended that since the proceedings before the Tribunal are at a final stage and the petitioner has every right to defend its case by referring to different documents, oral submissions vide physical hearing would be more effective. The counsel for the petitioner also referred to a circular dated July 1, 2021 issued by the Rajasthan High Court wherein directions had been given for the functioning of Subordinate Courts/Special Courts/Tribunals from July 5, 2021.
Courts Observation and Judgment
The court taking cognizance of the grievance raised issued notice to the NCLT in the plea and directed that an additional copy be served on Additional Solicitor General RD Rastogi as well.
The Court directed, "Issue notice of the writ petition as well as stay application, returnable on December 21, 2021. Notices may be given 'dasti'. Additionally, a copy of the writ petition be served in the office of Additional Solicitor General RD Rastogi, who represents respondent No.2. His name be shown in the cause list".
The Court further stayed the proceedings before the NCLT till the next date of hearing.
The bench remarked, "Till the next date, the National Company Law Tribunal, Jaipur Bench is restrained to proceed further in CP No.(IB)- 213/9/JPR/2020 under Section 9 of the IBC, 2016 ."
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