Rajasekhar VK, Member (Judicial), National Company Law Tribunal (NCLT) has moved the Delhi High Court challenging the transfer orders issued by BSV Prakash Kumar, Acting President of National Company Law Tribunal in April and May.
A Direction is also sought to appoint an eligible Member as the Acting President, in place of BSV Prakash Kumar. Vide orders issued on April 30 and May 12, the Acting President had shuffled the posting of the NCLT Members.
In the Petition filed through Advocate Vandana Sehgal, Rajasekhar VK (Petitioner) has contended that the transfer orders are in violation of statutory provisions and the rules of transfers, specifically Rule 15A of NCLT (Salary, Allowances & other Terms and Conditions of Service of President and other Members) Rules, 2015.
It was stated that in the absence of any consultation/order passed by the Central Government, through the Minsitry of Law & Justice, the orders of transfer of NCLT Members were illegal and contrary to the decision of the Supreme Court in UOI vs Madras Bar Association.
It was also pointed out that transfer orders were signed by the Registrar, NCLT who had no power to do so.
The Petitioner has said that in terms of Section 419(2) of the Companies Act, 2013, the President ought to preside over the Principal Bench at New Delhi. However, in spite of the mandate of law, the Acting President first held court from Chennai and then transferred himself to Mumbai.
The Petitioner has prayed that status quo in respect of posting of NCLT Members be maintained till the time a President is appointed and the transfer orders issued by the Acting president be set aside.