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        2021 (3) TMI 377 - HC - Companies Law

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        Virtual Hearing Entry Regulation by Court: NCLT & NCLAT Procedures for Fair Consideration The Court acknowledged the need for regulated entry in virtual hearings to prevent disturbances, directing the NCLT and NCLAT to regulate procedures for ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Virtual Hearing Entry Regulation by Court: NCLT & NCLAT Procedures for Fair Consideration

                              The Court acknowledged the need for regulated entry in virtual hearings to prevent disturbances, directing the NCLT and NCLAT to regulate procedures for fair consideration of link requests and transparency. Parties were instructed to maintain discipline. The judgment also addressed the future transition to physical hearings by the NCLAT, emphasizing that virtual hearings were a COVID-19 response measure. Interested parties were advised to email the Deputy Registrar in advance for consideration. The petition was disposed of based on these terms, including the resolution of pending applications.




                              Issues:
                              Petitioner seeking provision of open or virtual links for attending hearings in the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT).

                              Analysis:
                              The Petitioner filed a petition requesting open or virtual links for attending NCLT and NCLAT hearings, emphasizing the need for transparency and access for interested parties. The Petitioner's counsel argued that the use of the CISCO Webex platform should align with the concept of an 'open Court'. The prayer in the writ petition sought mandamus to allow the Petitioner to witness specific proceedings and to provide links from the start of court hours. The NCLT and NCLAT, represented by the Deputy Registrar, highlighted the bandwidth capacity and the necessity to regulate links for virtual hearings to maintain discipline. The ASG referred to a Supreme Court circular on regulating virtual hearings and emphasized the need for a similar procedure in the tribunals.

                              The Court, after reviewing the affidavits and arguments, acknowledged the need for regulated entry in virtual hearings to prevent disturbances. The NCLT and NCLAT's concern about separate 'active' and 'viewing' links, potential disruptions from unlisted matters, and the disposal of the Delhi Gymkhana Club case were noted. The judgment directed the tribunals to regulate their procedures for virtual hearings to ensure fair consideration of link requests and transparency. Parties joining the proceedings were instructed to maintain discipline and avoid unnecessary disruptions.

                              Furthermore, the judgment addressed the transition to physical hearings by NCLAT in the future, indicating that virtual hearings were a COVID-19 response measure. Parties interested in specific hearings were advised to email the Deputy Registrar at least 24 hours in advance for consideration following the tribunals' procedures. The petition was disposed of based on the above terms, including the resolution of pending applications.
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                              ActsIncome Tax
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