The High Court of Delhi has disposed of the plea challenging the transfer orders of NCLT Members issued by BSV Prakash Kumar, Acting President after the Petitioner, Rajasekhar VK, Member (Judicial) accepted his transfer.
The learned counsel for the petitioner submits that the petitioner has accepted the transfer without prejudice to his rights and contentions and only to ensure that the work of the NCLT does not suffer inasmuch as the only Member of the NCLT Kolkata had since retired and the work of the Tribunal was suffering.
The learned counsel for the intervener also submits that larger questions of law have been raised in the present petition, including those affecting the rights of the intervener and on the appointment of respondent no. 2 as the Acting President of the Tribunal.
Petitioner contended that the transfer orders were 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.
Rajesh Dayal Khare, Member (Judicial) subsequently intervened in the petition and contended that BSV Prakash Kumar was not eligible to act as the Acting President in terms of Section 409 of the Companies Act, 2013.
The single bench judge of Justice Navin Chawla said:-
"Be that as it may, as the petitioner has now accepted the transfer, the present petition is disposed of leaving all questions of law open to be adjudicated in a proper proceeding. This court does not deem it appropriate to consider these questions on the petition filed by the petitioner. The intervener shall be at liberty to agitate the same by way of an independent petition, if so advised. The petitioner shall also not be prejudiced merely due to the disposal of the present petition."
Rajasekhar was granted liberty to take up the challenge in the future.
The plea had 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 had 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 a member (judicial) at NCLT, Allahabad Bench.
Case Name: (Rajasekhar VK vs UOI)
Rajasekhar(Petitioner) was represented by Advocates Abhijeet Sinha, Vandana Sehgal
Khare was represented by Advocate SD Singh.
Centre(Respondents) was represented by ASG Chetan Sharma and Advocate Harish V Shankar.
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