NCLT will have Benches at the seat of every High Court, Centre tells Supreme Court

The Central government has submitted in the Supreme Court that Benches or circuit Benches of the National Company Law Tribunal (NCLT) will be established at the seat of every High Court..This has been informed vide a counter affidavit submitted by the Centre in the Public Interest Litigation filed by the Madras Bar Association challenging the Constitutionality of the provisions of the Companies Act which seek to create the NCLT and the National Company Law Appellate Tribunal (NCLAT)..One of the provisions challenged by the Petitioner is Section 419 of the Companies Act which provides for the seat of the NCLT. The Petitioner’s contention is that Section 419 only provides for the seat of the principal Bench of the NCLT and “does not state where other Benches will sit”. This, according to the Petitioner, is violative of the directions in the cases of Sampath Kumar v. Union of India and L Chandra Kumar v. Union of India both of which had laid down that “permanent Benches of administrative tribunals needed to be established at the seat of every jurisdictional High Court. And if that was not possible, at least a circuit bench required to be established at every place where an aggrieved party could avail of his remedy.”.It is in reply to this contention that the Centre has come on record and stated the following:.“It is intended to establish a Bench or a circuit Bench of NCLT at the seat of every jurisdiction High Court after taking into account the quantum of litigation, geographical location etc. before transfer of any of the responsibilities from the High Court to the Tribunal.”.The case is now listed for hearing on February 10.