Government moves NCLAT against NCLT directive to make MCA a party in all insolvency cases

New Delhi, December 5 () The government has moved the National Court of Appeals on Company Law (NCLAT) against an order approved by NCLT to make the Ministry of Corporate Affairs be a party to all applications filed under the Code of Insolvency and Bankruptcy, as well as the Companies Act.

In a petition filed through the Ministry of Corporate Affairs (MCA), the government said the order approved by the Main Bank of the Corporate Law Court (NCLT), based in Delhi, was beyond the power and jurisdiction that It had been conferred.

By approving an order on November 22 in the case of the Oriental Bank of Commerce versus Sikka Papers, the NCLT bank headed by its president, Judge MM Kumar, had ordered that MCA should be one of the parties in all insolvency cases and company presented to him.

On Thursday, the petition filed by MCA against the order was mentioned before an NCLAT bank headed by its President Justice S J Mukhopadhaya.

The appeals court is expected to hear the case on Friday.

In its order, the NCLT had said: We also direct that in all cases of the Bankruptcy and Bankruptcy and Petition Code of the Company, the Union of India, the Ministry of Corporate Affairs through the Secretary be implemented as a defendant to be make an authentic record available by officials of the Ministry of Corporate Affairs for an adequate assessment of the issues. This will be applicable throughout the country to all banks of the National Court of Corporate Law. The Registrar will send a copy of this order to all NCLT banks so that the respective Deputy Secretary can ensure that the appropriate parts are implemented, the NCLT had said on November 22. KRH ABM

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