On Monday, the Delhi High Court issued notice to the Central Government while taking up a PIL challenging the appointment of Justice Bansi Lal Bhat as the Officiating Chairperson of the National Company Law Appellate Tribunal.

The Central Government, in March this year had appointed Member (Judicial) Bansi Lal Bhat as the officiating Chairperson of NCLAT after Justice SJ Mukhopadhaya completed his term of service and demitted the post.

The pettion has been filed by Fozia Rahman in which he has argued that the appointment of Justice Bhat as officiating Chairperson was contrary to Section 415 of the Companies Act, 2013 as well as the Tribunal, Appellate Tribunal and other Authorities (Qualifications, Experience and other Condition of Service of Members) Rules, 2020.

It has been contended in the petition that the law mandates that the Senior-most member to act as the “Acting Chairperson” and thus the Central Government was not empowered to overlook seniority in case of appointment of a member, whether judicial or technical, to officiate someone as Chairperson.

The arguement of the petition was that since Justice Bhat isn't the senior-most member at NCLAT, his appointment can' be sustained.

The petition to this regard mentions:

"Whereas Justice (Retd.) Shri Bansi Lal Bhat was appointed as Judicial Member on 17.10.2017, Hon’ble Mr. Balvinder Singh, Member (Technical) was appointed on 01.07.2016 and Hon’ble Mr. Justice A.I.S. Cheema, Member (Judicial) was appointed on 11.09.2017 and are both members holding greater seniority."

It was further submitted that Rule 10 of the Tribunal Rules cannot be read to suggest that in cases where the Tribunal concerned doesn't have designations like 'Vice-Chairperson/ Vice-Chairman/ Vice-President', such as NCLAT, any member can be appointed irrespective of seniority.

The petititoner has informed the Court that she has even made a representation to the Central Government on June 8 and brought to their notice this matter but has got no response from their side.

It was apprehended that even post that presentation, she got no response and Justice Bhat would continue to carry out functions as the Officiating Chairperson while Rahman moved to the High Court.

The Court has posted the matter for hearing to June 30.

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