NCLAT's Chennai Bench To Commence Functioning From January 25 Through Virtual Mode

A notification issued in this behalf states that the filing of Fresh Appeals against the orders of the Benches of the National Company Law Tribunal having jurisdiction in respect of States of Karnataka, Tamil Nadu, Kerala, Andhra Pradesh and Telangana and Union Territories of Lakshadweep and Puducherry shall have to be made before the Chennai Bench of NCLAT w.e.f. 25^th January 2021.

Further, the notification states that the filing of Interlocutory Applications/Reply/Rejoinder etc. in respect of aforementioned appeals will also be made before the Chennai Bench of NCLAT as per NCLAT Rules, 2016 and SOP.

It may be noted that while constitution the NCLAT Bench at Chennai (in March 2020), the Ministry of Corporate Affairs had stated that the Bench shall hear appeals against the orders of the Benches of the National Company Law Tribunal (NCLT) having jurisdiction of Karnataka, TN, Kerala, AP, Telangana, Lakshadweep and Puducherry.

Notably, a Petitioner (G. V. Mohan Kumar) had moved the Madras High court in November 2020, submitting that even though physical establishment for the institution (NCLAT, Chennai Bench) has also been allotted and all the preparatory works have been completed, no further action has been taken to ensure commencement of its functioning.

Hearing his plea, the Madras High Court last month observed that the delay in establishing a Bench of NCLAT in Chennai may amount to contempt of the Supreme Court's direction in the Swiss Ribbons case to establish circuit Benches of the Tribunal.

A Division bench comprising of Justice M. Sathyanarayanan and Justice P. Rajamanickam directed the Additional Solicitor General of India to seek instructions in the matter and file a counter affidavit.

In Swiss Ribbons Pvt. Ltd & Anr. v. Union of India & Ors., the Attorney General had, in January 2019, assured the Apex Court that Circuit Benches will be established. The Supreme Court had recorded this submission with a direction to comply within six months.

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