NCLAT : In NUI Pulp and Paper Industries Pvt. Ltd. vs. M/s. Roxcel Trading GMBH

The Tribunal viz. NCLT has inherent powers to make such order as it may deemed necessary for meeting the ends of justice or to prevent abuse of the process of the Tribunal.

Rule 11 of the National Company Law Tribunal Rules, 2016 deals with ‘inherent powers’ of the National Company Law Tribunal and reads as follows:

“11. Inherent Powers.- Nothing in these rules shall be deemed to limit or otherwise affect the inherent powers of the Tribunal to make such orders as may be necessary for meeting the ends of justice or to prevent abuse of the process of the Tribunal.”

From the aforesaid Rule 11, it is clear that the Tribunal viz. NCLT can make any such order as may be necessary for meeting the ends of justice or to prevent abuse of the process of the Tribunal.

It is clear that once an application under Sections 7 or 9 is filed by the Adjudicating Authority, it is not necessary for the Adjudicating Authority to await hearing of the parties for passing order of ‘Moratorium’ under Section 14 of the ‘I&B Code’. To ensure that one or other party may not abuse the process of the Tribunal or for meeting the ends of justice, it is always open to the Tribunal to pass appropriate interim order.

(Link : https://nclat.nic.in/Useradmin/upload/14411968585d3065a868ff2.pdf)