New Delhi: The Supreme Court Wednesday issued notices to the National Company Law Appellate Tribunal (NCLAT) judicial member Rakesh Kumar and technical member Alok Srivastava, asking them why contempt proceedings be not initiated against them for defying its order in Finolex Cables disputes matter.
The Chief Justice orally remarked that "people with big resources and money think they can take the court for a ride and this will not happen at all". A bench led by Chief Justice of India D Y Chandrachud said: “Corporate India should know that if our orders are being subverted then they should know that there is a Supreme Court who is watching. That is all we wish to say now...”
The bench, also comprising Justices J B Pardiwala and Manoj Misra, set aside the NCLAT bench's October 13 judgment relating to the annual general meeting (AGM) of Finolex Cables without going into its merit. The bench said NCLAT members, not Justice Ashok Bhushan, but apart from him, there is rot, and the NCLAT has got down to rot now and this case is an illustration of that rot. “We are prima facie of the view that the members of the NCLAT have failed to disclose correct facts”, said the bench. It is rare for the Supreme Court to issue contempt notices against NCLAT members.
The Chief Justice said that the court is of the view that it is necessary to pass orders to ensure that its dignity is restored. The bench said that parties cannot be allowed by recourse to devious means to obviate its orders. The Chief Justice noted that the court has serious doubts as to how the matter has proceeded in NCLAT and “we have serious doubt about the honesty of the members here”.
The Chief Justice observed that an NCLAT member who heard the matter was appearing in this case, and he should have recused and then he appeared in the Supreme Court also. The Chief Justice said, “We direct that October 13, NCLAT judgment is set aside without getting into merits. The appeal to be heard again by the bench headed by Justice Ashok Bhushan…we are prima facie of the view that judicial and technical members are liable to be proceeded against for contempt of court….Thus we issue showcase notice to show why contempt should not be carried against them. Let them be present in court on October 30, 10:30 am...”
The NCLAT order was related to the annual general meeting (AGM) of Finolex Cables and Prakash Chhabria and Deepak Chhabria’s legal tussle over the management control of the company. On October 13, the apex court passed an order directing NCLAT to defer the pronouncement of its order till the time the results of the AGM were submitted in the form of a report by the scrutinizer. However, NCLAT did not adhere to it and proceeded to pass its order. The Supreme Court, on the same day learning that its order was not adhered to, directed NCLAT chairperson Justice Ashok Bhushan to inquire into the allegations.
During the hearing on Wednesday, the apex court said let them come to this court and then they will understand the power of this court. The Chief Justice orally remarked that individuals with significant resources and influence should not be allowed to manipulate the judicial system. He said these people with big resources and money they think they can take the court for a ride and this will not happen at all.
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