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NCLT(Judicial) Member Moves to Delhi HC Against Transfer Orders Issued by Acting President
Rajasekhar VK, a member(judicial) of National Company Law Tribunal (NCLT) has filed a plea in Delhi HC against his transfer order initiated by NCLT acting President, BSV Prakash Kumar. The order transfers him from Mumbai branch to Kolkata branch. The plea was filed against two orders dated April 30th and May 12th. The one order was regarding the transfer of various members to different states and the other was regarding the president's own transfer from Chennai Branch to Mumbai Branch.
Mr. Rajasekhar filed his plea through Advocate Vandana Sehgal in which he claimed that these transfers were malicious and lacks constitutional mandate. He said that the transfers are not valid as they violate the rules, specially rule 15-A of NCLT (Salary, Allowances & other Terms and Conditions of Service of President and other Members) Rules, 2015.
He further highlighted that in UOI vs Madras Bar Association, it was held that the transfer of NCLT members requires order passed by the Ministry of Law and Justice. Otherwise, it will be considered illegal. He also added that the orders were signed by the Registrar of NCLT who did not possess the power to sign them.
He also alleged that the transfers were done out of malice as there was no need to issue the orders during the time of lockdown when nobody would be able to join their new offices. He also raised the question about the absence of Acting Chairperson from the Principal Bench as according to Section 419(2) of the Companies Act, 2013, president is obliged to preside the meeting at New Delhi. Despite the president chose to take transfer not in Delhi but in Mumbai.
He requested the court to appoint an eligible member as the Acting President because Mr. Kumar only worked as a District Judge and as a Member of Company Law Board. He is not eligible to be appointed as President in the presence of Justice Rajesh Dayal Khare who is a Retired High Court Judge and currently working as a Member (Judicial) at NCLT Allahabad.
So the petitioner requests the court to set aside the transfer orders and maintain the status quo regarding the post of NCLT Members until a President is appointed.
