Delhi HC issues notice in plea challenging appointment of Justice (Retd) Bansi Lal Bhat as Officiating Chairperson, NCLAT

The Delhi High Court today issued notice in a public interest litigation challenging the appointment of Justice Bansi Lal Bhat as the Officiating Chairperson of the National Company Law Appellate Tribunal. .Notice to the Central Government was issued by a Division Bench of Chief Justice DN Patel and Justice Prateek Jalan in the petition by Advocate Fozia Rahman..Bar is supposed to argue but I argued and the Bar tolerated: First NCLAT Chairperson, Justice SJ Mukhopadhaya bids farewell.In March this year, the Central Government had appointed Member (Judicial) Bansi Lal Bhat as the officiating Chairperson of NCLAT after Justice SJ Mukhopadhaya demitted the office of Chairperson upon completion of his term..Centre appoints Justice Bansi Lal Bhat as officiating Chairperson of NCLAT.In her petition, Fozia Rahman has argued that the appointment of Justice Bhat as officiating Chairperson was contrary to Section 415 of the Companies Act, 2013 as well as the Tribunal, Appellate Tribunal and other Authorities (Qualifications, Experience and other Condition of Service of Members) Rules, 2020..It is her case that the law mandates that the senior-most member to act as the “Acting Chairperson” and the Central Government was not empowered to overlook seniority in case of appointment of a member, whether judicial or technical, to officiate as Chairperson..Since Justice Bhat is not the senior-most member at NCLAT, his appointment cannot be sustained, it is argued..Whereas Justice (Retd.) Shri Bansi Lal Bhat was appointed as Judicial Member on 17.10.2017, Hon’ble Mr. Balvinder Singh, Member (Technical) was appointed on 01.07.2016 and Hon’ble Mr. Justice A.I.S. Cheema, Member (Judicial) was appointed on 11.09.2017 and are both members holding greater seniority.the Petition reads. .Rahman has further submitted that Rule 10 of the Tribunal Rules cannot be read to suggest that in cases where the Tribunal concerned does not have designations like “Vice-Chairperson/ Vice-Chairman/ Vice-President”, such as NCLAT, any member can be appointed irrespective of seniority..Rahman has stated that she even made a representation to the Central Government on June 8 and brought to their notice the illegality qua the appointment of Justice Bhat. .However, no response was received by her. .Apprehending that no response would be given in future as well, and Justice Bhat would continue to carry out functions as the Officiating Chairperson, Rahman chose to move the High Court. .Rahman was represented by Senior Advocate Rajeev K Virmani and Advocate M Qayam-Ud-Din..The matter would be heard next on June 30.