Can the matter at NCLT be heard by two Hon’ble Members and order pass by Single Member?

As per rule 152 of NCLT Rules, 2016, if the Members of the Bench who heard the case are not readily available or ceased to be Members of NCLT, the President may authorise any other Member to pronounce the order on his behalf after being satisfied that the order has been duly prepared and signed by all the Members who heard the case.

In the matter of Raj Singh Gehlot, Director of Ambience Pvt. Ltd. vs. Vistra ITCL(India) Ltd. & Anr. the said Appeal was admitted by Hon’ble Member (Judicial) on 27th August, 2019 as in the meantime one of the Hon’ble Member (Technical) Ms. Deepa Krishan retired on 19th July, 2019.

The order of ‘admission’ is challenged on the ground that the matter having been heard by two Hon’ble Members and the final order could not have been passed by Hon’ble Member(Judicial). The Learned Senior Counsel appears on behalf of the Appellant referred to Section 419(3) of the Companies Act and Rule 152(4) of NCLT Rules, 2016 in support of its claim. Rule 152 of NCLT Rules, 2016 states that if the Members of the Bench who heard the case are not readily available or have ceased to be Members of NCLT, the President may authorise any other Member to pronounce the order on his behalf after being satisfied that the order has been duly prepared and signed by all the Members who heard the case and if the order cannot be signed by reason of death, retirement or resignation or for any other reason by any one of the Members of the Bench who heard the case, it shall be deemed to have been released from partheard and listed afresh for hearing.

Accordingly, the matter remitted back for fresh hearing on merit relating to admission of application under Section 7 of I&B Code.

(Link : https://nclat.nic.in/Useradmin/upload/11976078095db2ef599ef9a.pdf)

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