Tribunal Directs Correct Bench Composition & Clarifies Status Quo Order

The Tribunal upheld the appeal against the order passed by the Adjudicating Authority, emphasizing the need to list the matter before a Bench comprising both a Judicial Member and a Technical Member. The recusal of the Judicial Member prompted the Tribunal to direct administrative action for the correct composition of the Bench. Additionally, the Tribunal clarified that the order of status quo was interim and subject to further directions, allowing the appellant to seek modifications as needed.

---

---

Issues:
1. Appeal against the order dated 17.12.2021 passed by the Adjudicating Authority.
2. Recusal of a Judicial Member and its impact on the proceedings.
3. Request for listing the matter before a Bench comprising a Judicial Member and a Technical Member.
4. Questioning the order of status quo passed by the Adjudicating Authority.

Analysis:
1. The appeal was filed against the order dated 17.12.2021 passed by the Adjudicating Authority, noting that the main matter was referred to the third Bench by the Hon'ble President, and further orders were required pending the hearing of the main application. The State Bank of India, being aggrieved by this order, filed the appeal. The appellant raised concerns about the various orders and proceedings related to the main proceeding, highlighting that the order of status quo had been passed while the main petition was pending consideration. The Single Bench had observed the need to list the matter before the appropriate Bench.

2. The judgment detailed the recusal of a Judicial Member from the case due to personal reasons, leading to the request for the Registry to arrange for another Judicial Member to hear the matter alongside the Technical Member. Subsequent orders and notifications were issued to address the composition of the Bench, emphasizing the importance of having both a Judicial Member and a Technical Member for the disposal of the case.

3. The Tribunal emphasized the necessity of listing the matter before a Bench consisting of both a Judicial Member and a Technical Member, as previously held in a judgment dated 24.08.2020. The Tribunal highlighted that after the recusal of the Judicial Member, there were no grounds for a difference of opinion, and the matter should have been heard by a Bench with the required composition. The Tribunal directed the President of the NCLT to take appropriate administrative action to list the matter before the correct Bench.

4. The judgment addressed the appellant's challenge to the order of status quo passed by the Adjudicating Authority. The Tribunal noted that the order was of an interim nature and subject to further orders by the Adjudicating Authority. The Tribunal disposed of the appeal, instructing the Registrar to present the order before the President for appropriate action regarding listing the main Company Petition before the correct Bench. The Tribunal allowed the appellant to request further orders, including the vacation of the interim order if necessary.

---