OPERATION OF NCLAT

• The Ministry of Corporate Affairs on 13.03.2020 constituted a second Bench of the Hon’ble National Company Law Appellate Tribunal at Chennai, coming into force from 18.03.2020; to hear the appeals against orders of the Hon’ble NCLT Benches having Jurisdiction of Karnataka, Tamil Nadu, Kerala, Andhra Pradesh, Telangana, Lakshadweep and Puducherry.
• The filing with the Registry continued to be made in the Hon’ble NCLAT, Delhi Bench due to lack of infrastructure and man power, which was notified through a notification dated 16.03.2020.
• The Hon’ble NCLAT through further notifications had mentioned on 17.03.2020 that the Members sitting in the Hon’ble NCLAT, Chennai Bench shall admit, hear and dispose of such appeals as may be filed after constitution of Chennai Bench w.e.f. 18.03.2020.
• Subsequently, an office order was issued on 11.01.2021 in partial modification of the earlier orders stating that only new cases (appeals) would be filed in the NCLAT Chennai Bench. The old cases already filed pending till the date of operationalization of the NCLAT Chennai Bench shall be heard and decided by the Principal Bench at New Delhi.
• Finally on 25.01.2021, the NCLAT Chennai has started operations through virtual mode vide notification dated 23.01.2021. The filing of fresh appeals and the filing of Interlocutory Applications / Reply / Rejoinder etc. pertaining to these appeals shall be made before the Chennai Bench.

AMA View:

It would be too early to mention anything about the efficacy of this development. There is no doubt that it was certainly needed in the interests of litigants towards their access of the Appellate Forum; certain practical aspects such as the status of pending cases before the Hon’ble NCLAT, Delhi and the physical infrastructure once the life normalizes is yet to be determined. There remains ambiguity in the minds of litigants with respect to pending matters due to the multiple notifications and orders which will be known in due course.

AMA has represented various stakeholders before the NCLAT, Delhi Bench and AMA’s dedicated team for NCLAT matters will continue to support professionals, clients in South India needing assistance with respect to the matters before the NCLAT Bench, Chennai and is in the process of expanding its team strength towards the same.