The Bombay High Court, in a far-reaching order, has set aside an earlier order of National Company Law Tribunal (NCLT) which had admitted an insolvency petition against Rolta India. A two-member Mumbai bench of the tribunal admitted the plea of — Value Partner Greater China High Yield Income Fund and Pinpoint Multi-Strategy Fund — claiming default of around Rs 1,060 crore.
Kamal Singh, the director of the company, had challenged the NCLT’s order. The High Court set aside the appointment of an insolvency resolution professional. The NCLT had appointed Shailendra Ajmera of EY as the interim professional of the company to complete the Corporate Insolvency Resolution Process.
How the Case unfolded?
- Instead of going to NCLAT, a writ petition was filed in the High Court against the NCLT order.
- It is alleged that on 22nd October 2019, the Bench of the Judicial Member and Technical Member did not conduct any adjudicatory business. It is stated that the order has been put in communication without the same having been pronounced.
- The grounds are then set out and in relation to the validity and legality of the order, it is stated that this order is passed in violation of the principles of natural justice and the procedure established by law, which governs the functioning of the NCLT.
Various legal Provisions involved:
Writ Petition challenge:
- Writ Petition under Article 226 of the Constitution of India challenges the order passed by the NCLT.
Regarding NCLT Order
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