Why NCLT ordered impleadment of Ministry of Corporate Affairs as a party to Insolvency and Bankruptcy cases?

Ministry of Corporate Affairs being a party would facilitate the availability of authentic record for the proper appreciation of the matters being contested before it.

The Honourable Principal Bench of NCLT in the matter of Oriental Bank of Commerce vs. M/ s. Sikka Papars Ltd. & Ors. directed that in all cases of Insolvency & Bankruptcy Code and Company Petition, the Union of India, Ministry of Corporate Affairs through the Secretary be impleaded as a party respondent so that authentic record is made available by the officers of the Ministry of Corporate Affairs for proper appreciation of the matters and also ordered all benches of NCLT to ensure that proper parties being impleaded in Insolvency and Bankruptcy cases.

The Honourable NCLT issued direction in numerous orders of admission of petition under Section 7, 9 & 10 of the Insolvency & Bankruptcy Code have not been complied with by ROC wherein the NCLT asked to update the master data of the Corporate Debtor so as to inform the public at large about the status of the company which has come under Corporate Insolvency Resolution Process.

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