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Delhi HC Directs NCLT Not To Take Coercive Action Against Its Member Rajashekhar VK

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The Delhi High Court on Friday directed the National Company Law Tribunal to refrain from taking any coercive action against its member Rajashekhar VK in a petition seeking direction to appoint an eligible member, judicial as the President in place of Mr. B.S.V. Prakash Kumar, who through orders issued on April 30 and May 12, had shuffled the posting of the NCLT members.

A single-judge bench of Justice Navin Chawla of Delhi High Court while conducting hearing through video conferencing gave its order in furtherance of the NCLT order dated 4th June 2020 directing the transferred members to join at their new place of posting by 8th June 2020.

On 4th June 2020 an Intervening application has also been filed by Mr. Rajesh Dayal Khare, Member (Judicial), National Company Law Tribunal, Allahabad Bench in the petition filed by Mr. Rajasekhar V.K. challenging the order of the Acting President who while shuffling the posting of several Members allegedly transferred himself from NCLT Chennai to NCLT Mumbai for getting a prime posting where several high stake matters are pending. The Court has further allowed Mr. Khare to file his brief synopsis of arguments before the next date of hearing.

However, when the Court asked the Counsel appearing for the central government that, by what time the lockdown may be lifted and by what time judges may be transferred, the Counsel answered stating that it may be lifted by 30th June and it may take 15 more days for the transfer to be executed.

The Court while directing the NCLT not to take any coercive action against its member observed that transfer may not be executed before 16th July. 

The petition filed through Advocate Vandana Sehgal alleged that “the impugned transfer orders are in violation of the statutory provisions of law, the rules of transfer and also the law laid down by the Hon’ble Supreme Court of India, in this regard.”

The petition further stated that “the transfer orders transferring Petitioner, is in violation of rule 15A of the NCLT Salary, Allowances & other Terms and Conditions of Service of President and other Members Rules, 2015, as amended from time to time as also the law laid down by the Hon’ble Supreme Court of India.”

The Matter is listed for 12th June 2020. 

-India Legal Bureau

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