Tribunal Bar demands NCLAT bench in Allahabad

Tribunal Bar demands NCLAT bench in Allahabad

The Company Law Tribunal Bar Association plea states that establishing NCLAT bench will help those living in the northern parts of the country since travelling to Delhi each time is expensive and delays dispensation of justice

The Allahabad High Court has issued a notice to the Government of India on a plea seeking setting up a bench of the National Company Law Appellate Tribunal (NCLAT) in Prayagraj (Allahabad).

A division bench of Justices Sanjay Yadav and Jayant Banerji on 10 February 2021 heard Senior Advocate RP Agarwal and Advocate Udai Chandani on behalf of the Company Law Tribunal Bar Association, Allahabad, and directed the Ministry of Corporate Affairs and the Ministry of Law and Justice to file their responses within four weeks.

The Bar Association in its plea has highlighted the problems the litigants face in travelling to Delhi frequently and the financial burden these frequent travels bring making dispensation of justice expensive and time-consuming.

NCLAT has presently only two benches. While the principal bench is in New Delhi, a second bench was recently established in Chennai.

The plea states that the Delhi bench is overburdened since appeals from all over the country are filed before it. This has led to huge pendency of cases and the very purpose of establishi8ng a Tribunal for expeditious disposal of appeals are getting defeated.

"Establishment of the Tribunal and Appellate Tribunal are to accelerate justice delivery but due to the present facts and circumstances the tribunal, as well as Appellate Tribunal, has itself become a victim of delay in the judicial process and the purpose is being frustrated," states the plea.

It adds that establishing NCLAT bench in Allahabad will help those living in the northern parts of the country.

The plea has further pointed out that the Attorney General had in January 2019 assured the Apex Court that Circuit Benches of NCLAT will be established in various parts of the country during the Swiss Ribbons Pvt Ltd & Anr. v. Union of India & Ors., (2019) 4 SCC 1726. The Supreme Court had recorded this submission with a direction to comply within six months.

The Madras High Court had last year observed that the delay in setting up the NCLAT bench in Chennai may amount to contempt of the Supreme Court, following which the Chennai bench was established on 5 January 2021.

The Bombay High Court is also seized with a petition filed by Advocate Nicky Pokar, seeking directions to the Government of India, for establishing a circuit bench of NCLAT in Mumbai.

The Allahabad HC has fixed the week commencing 22 February 2021 for further hearing on the plea.