Delhi High Court Upholds Appointment Of Shreesha Merla As Technical Member Of NCLAT

The Delhi High Court today upheld the appointment of Shreesha Merla as a Member (Technical) of the National Company Law Appellate Tribunal.

The Division Bench of Chief Justice DN Patel and Justice Jyoti Singh observed,

"Looking to the qualification of Respondent no. 2 (Merla), she is fully qualified to be appointed as a Technical Member of the NCLAT...She has also served as member of the National Consumer Commission for several years."

The Bench added that Merla was selected by a duly constituted Search-cum-Selection Committee headed by the then Chief Justice of India and that the process of selection was also in accordance with the law.

"Hence we see no reason to entertain this petition," the Bench said.

It further observed that the license of the Petitioner, India Awake for Transparency, claiming to be an active company under Section 8 of the Companies Act, 2013, was cancelled. In fact, the Petitioner had filed a false affidavit claiming to be an active company.

The Court was further informed that the Petitioner was in a habit of repeatedly filing such types of litigations and upon dismissal of the same with imposition of cost, it was not depositing the cost.

ASG Chetan Sharma appearing for the Ministry of Corporate Affairs and Advocate PB Suresh appearing for Merla, submitted before the Court that when no order is passed by any judicial officer in favour of the Petitioner, the latter levels such types of allegations against the judicial officer concerned.

"Petitioner is a chronic litigant. It's indirectly challenging an appointment made by a committee led by Chief Justice of India. How will judicial officers function with damocles sword always hanging over their heads?" Suresh argued.

Further, ASG Sharma contended that a PIL is not maintainable in service matters. He further relied on the Supreme Court's decision in Rojer Mathew vs South Indian Bank Ltd And Ors. where a unique selection method for NCLAT members was approved.

In view of the aforesaid circumstances, the Court dismissed the petition with cost of Rs. 25,000 to be deposited within 4 weeks with the Delhi State Legal Services Authority.

Case Title: India Awake for Transparency v. Union of India & Anr.