NCLAT maintains the NCLT directive to make MCA a party in all insolvency cases

New Delhi, December 10 () The National Court of Appeals for Company Law (NCLAT) on Tuesday suspended an order approved by NCLT for the Ministry of Corporate Affairs to be a party to all applications filed under the Insolvency and Bankruptcy Code , as well as the Companies Law.

An NCLAT bank headed by President Justice S J Mukhopadhaya suspended the order approved by the main bank of the National Court of Corporate Law (NCLT) and set January 2, 2020 as the next hearing date.

The appeals court's address was produced by a petition filed by the government through the Ministry of Corporate Affairs (MCA) that challenges the NCLT order.

In its petition, the government said the order approved by NCLT was beyond power and the conferred jurisdiction.

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

In its order, the NCLT had said: We also direct that in all cases of the Bankruptcy and Bankruptcy Code and Company Petition, the Union of India, the Ministry of Corporate Affairs through the Secretary be implemented as a defendant to be done 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

comments