Injured by personal remarks made against them by the five-member bench on December 22, three members of the Justice (Retd) Jarat Kumar Jain, Balvinder Singh and Vijai Pratap Singh had approached the high court
By Abraham Thomas
PERREDITED ON FEBRUARY 19, 2021 04:58 PM IST
The Supreme Court on Friday overturned the derogatory remarks passed against the three sitting members of the National Companies Law Appeals Court (NCLAT) in an order passed by a five-member bench of the same Tribunal last year.
Damaged by personal remarks made against them by the five-member bench on December 22, three members of the Justice (Retd) Jarat Kumar Jain, Balvinder Singh and Vijai Pratap Singh had appeared in the high court. A reference made by a three-member bench had led to the approval of the said order, when the five-member NCLAT station held the reference not to be held, a disaster which was against judicial discipline.
Going through the petition, the rooftop court agreed that the remarks should be sought to be removed. Justice bench RF Nariman and BR Gavai said, We are with you. Will we remove the remarks immediately? Appearing to the plaintiffs, senior attorney Vinay Garg informed the court that remarks offending his clients were reproduced in the petition.
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The five-member NCLAT bench had remarked, We hope and believe that Benel Referral members will show a more serious attitude towards adhering to mandatory court precedents and will not undertake to cross the red line. Such a catastrophe weakens the authority of the law, the dignity of the institution also shakes the faith of the peoples in the rule of law. There were other parts highlighted in the petition that contained personal remarks against the three members.
Stoli said, We are of the opinion that the observations made against members of the court in the Special Permit (SLP) petition should be removed.
What invited these remarks against the applicants was a decision given by them sitting in a three-member combination on September 25, 2020. In doing so, they noted a previous decision by a five-member NCLAT bench that was in contrary to decisions taken by the Supreme Court. The question of whether entering the legal balance sheet of the company would constitute the recognition of the debt by the company. Supreme Court rulings held affirmatively while a five-member NCLAT panel ruled otherwise. Since a five-member NCLAT decision binds a three-member bench, the applicants chose to refer the matter to a five-member panel.
The petition from the three members of the Supreme Court filed through lawyer Amit Sharma, said: The biggest jewel has exceeded the limits of his jurisdiction and has made unpleasant and most derogatory comments which tend to be of a personal nature against Benel Referral .
The three members did not challenge the annulment of their reference order, but limited their challenge to personal remarks made against them. They went to court under section 62 of the Bankruptcy and Bankruptcy Code which allows any NCLAT order to be appealed to the high court.
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