Supreme Court issues show-cause notice to two NCLAT members for ignoring its status quo order

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Today, the Supreme Court of India issued contempt of court notices to two members of the NCLAT (National Company Law Appellate Tribunal) to show cause for defying its order in the case regarding the disclosure of results of the AGM (Annual General Meeting) of Finolex Cables. The two members of the NCLAT include Justice Rakesh Kumar (NCLAT judicial member) and technical member Dr. Alok Srivastava. While hearing the matter, the bench pointed out that there may be a larger problem within the NCLT (National Company Law Tribunal) as well as the NCLAT. The matter was heard by Chief Justice of India DY Chandrachud, Justice Manoj Misra, and Justice JB Pardiwala

The show-cause notices were issued by the bench to the two NCLAT members for delivering the October 13 judgment ignoring a status quo order passed by the Supreme Court. While setting aside the judgment passed by the NCLAT, the SC bench observed, “The manner in which the NCLAT has passed the directions is unbecoming of a tribunal.” It further ordered, “We are of the view that the members of the NCLAT bench are liable to be proceeded against in contempt proceedings. We issue a notice of show-cause against the members…they shall be present before this court on 30 October.”

While hearing the matter, the CJI expressed his dissatisfaction regarding the nCLAT’s conduct and said “After they were told specifically, how can the scrutinizer take opinion from former CJI and not declare the results…let them come to this court and we will send them marching off to Tihar jail. Then they will understand the power of this court. Which was this opinion he sought to defy the order of the Supreme Court. You ask the scrutinizer to be personally present before this court and tell him that we will sentence him.”