The Madhya Pradesh High Court directed the Union Government to clarify why two permanent members have not been posted at the National Company Law Tribunal (NCLT) Bench in Indore. The Court emphasised that failure to provide a satisfactory response may compel it to issue appropriate judicial directions.
The matter arose from a writ petition filed by the High Court Bar Association, which has been pending since 2017. The petitioner sought the operationalisation of the NCLT Indore Bench with a full-time and independent judicial composition. Though the bench was formally constituted in January 2017, no permanent members have been stationed there. Instead, matters pertaining to the Indore Bench are temporarily addressed by a Division Bench of NCLT Ahmedabad via video conferencing during afternoon sessions.
The petitioner moved an application requesting directions for making the NCLT Indore Bench fully functional by posting regular members. Along with the plea, the petitioner submitted the current status of all NCLT Benches as of March 7. It was contended that although several members were available in other benches, many of them lacked designated courtrooms and could be reassigned to Indore.
The petitioner’s counsel pointed out that the Principal Bench of NCLT at Delhi comprises six Division Benches, yet Division Bench No. 6 has been functioning without a courtroom since 2019. Similarly, Court No. 3 at the Kolkata Bench lacks a courtroom, and Division Bench No. 7 at the Mumbai Bench also operates without one. In view of this, it was submitted that the NCLT President could consider posting at least two such members, currently without courtrooms, to Indore, thereby making the Indore Bench independently functional.
It was further submitted that the High Court Bar Association had earlier made formal representations to the NCLT President and followed up via email, but no decision had been communicated so far. The counsel reiterated that there are at least two members available who, though appointed, have not been allotted functioning courtrooms, and could therefore be deployed to Indore without administrative disruption.
The Division Bench comprising Justice Vivek Rusia and Justice Gajendra Singh expressed concern over the prolonged non-operational status of the Indore Bench. Noting the submissions, the Court directed the Deputy Solicitor General representing the Union of India to obtain necessary instructions from the President of NCLT, the Principal Secretary of the Ministry of Law and Justice, and the Ministry of Corporate Affairs.
The Court remarked, “Shri Himanshu Joshi, Deputy Solicitor General, for the respondent No.1/UOI is directed to obtain instructions from Hon’ble President NCLT and Principal Secretary of Ministry of Law & Justice, Delhi and Principal Secretary of Ministry of Corporate Affairs (respondent No.2 & 3) as to why at least two members at NCLT Delhi or NCLT Mumbai are not being posted at NCLT Bench Indore, permanently. It is made clear that if satisfactory reply is not given then this Court may pass a judicial order/writ.”
Concluding the hearing for the day, the Court listed the matter for further proceedings on May 13, while keeping open the option of issuing judicial orders should the authorities fail to act or respond adequately.
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