Rajasthan High Court issues notice to NCLT Jaipur Bench on plea against denial of physical hearing

The Rajasthan High Court on Friday issued notice to the Jaipur Bench of the National Company Law Tribunal (NCLT) in an appeal against an order of the NCLT refusing the petitioner’s request to allow physical hearing (Dalas Biotech Ltd. vs. Farmasino Pharmaceuticals)..It was brought to the notice of Justice Ashok Kumar Garg, of the High Court's Jaipur Bench, that when the petitioner sought physical hearing in their case, the NCLT dismissed the application. Further, it was also pointed out that there is no Standard Operating Procedure laid down for physical hearings with respect to the infrastructure and facilities available at the Jaipur NCLT ..The counsel appearing for the petitioners submitted that the higher judiciary across the country had already initiated hybrid hearings.“The Apex Court as well as different High Courts including Rajasthan High Court has already started the hybrid system of hearing the matters either by physical mode or by virtual hearing,” it was submitted..It was also contended that with the proceedings before the NCLT at their final stage, the petitioner has a right to defend its case by using documents as well as by making oral submissions, for an effective decision in the matter.Considering the petitioner’s submissions, Justice Gaur issued notice to the NCLT in the plea and directed that an additional copy be served on Additional Solicitor General RD Rastogi as well.“Issue notice of the writ petition as well as stay application, returnable on December 21, 2021. Notices may be given ‘dasti’. Additionally, a copy of writ petition be served in the office of Additional Solicitor General RD Rastogi, who represents the respondent No.2. His name be shown in the cause list.”.Further, the High Court stayed the proceedings before the NCLT till the next date of hearing.“Till the next date, the National Company Law Tribunal, Jaipur Bench is restrained to proceed further in CP No.(IB)- 213/9/JPR/2020 under Section 9 of the IBC, 2016,” the Court ordered..Senior Advocate Kamlakar Sharma and advocates Nalin Kohli, Amol Vyas and Aastik Dhingra appeared for the petitioners..[Read Order]