SC draws up contempt proceedings against two members of NCLAT bench for defying apex court order

New Delhi, Oct 18 (IANS) The Supreme Court on Wednesday issued contempt notice to two members who were a part of a bench of NCLAT which allegedly defied an order of the apex court last week.

“We are prima facie of the view that Shri Rakesh Kumar, Member (Judicial) and Dr Alok Srivastava, Member (Technical) of the NCLAT are liable to be proceeded against in the exercise of contempt jurisdiction,” said a bench headed by CJI D.Y. Chandrachud and comprising Justices J.B. Pardiwala and Manoj Misra.  

The bench issued show-cause notice to the two members of the appellate tribunal as to why they should not be committed under the Contempt of Courts Act, 1971 for “wilfully” defying directions passed by the Supreme Court. 

In an order passed under exercise of powers provided under Article 142 of the Constitution to do complete justice, the top court set aside the judgment passed by the two-member bench of the NCLAT on October 13 saying that parties cannot take recourse to “devious” means to obviate compliance with the orders passed by the apex court.  

“We consequently direct that the appeal shall be heard afresh by a bench presided over by the Chairperson of NCLAT,” it added, clarifying that the apex court did not enter into merits of the rival contentions of the parties. 

On October 13, the top court ordered the Chairperson of the NCLAT to conduct an inquiry into the working of a bench of the appellate tribunal which allegedly defied an order of the Supreme Court. 

It had said that it is passing the order in "extraordinary circumstances" where the two-member bench of the NCLAT proceeded to pronounce the judgment despite the clear mandate of the order passed by the Supreme Court asking the appellate tribunal to declare "its judgment in the pending appeal after it is duly apprised of the fact that the result of the Annual General Meeting has been declared".

Senior advocates Abhishek Manu Singhvi and N.K. Kaul had apprised the top court that the bench consisting of Rakesh Kumar and Dr Alok Srivastava of the NCLAT proceeded to deliver the order despite request made by the petitioner before the appellate tribunal to not deliver the judgment until the report of the scrutiniser is made available.

"If what is stated is correct, this will clearly constitute the defiance of the order of this court by the NCLAT," the Supreme Court had said, noting that its order was uploaded at 1.55 p.m. while the scrutiniser's report was stated to be uploaded at 2.40 p.m.

It had said that the report prepared by the Chairperson of the NCLAT will specifically verify as to whether the order passed by the Supreme Court was drawn to the attention of the two-member bench of the appellate tribunal. 

The matter will be taken up for further hearing on October 30.