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        Companies Law

        2022 (7) TMI 150 - AT - Companies Law

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        Bench recusal and case transfer must be decided administratively by the President under tribunal rules. Where both members of a Bench have recused, the Bench cannot transfer the company petitions on the judicial side to another Bench. Under Rule 16 of the ...
                        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.

                            Bench recusal and case transfer must be decided administratively by the President under tribunal rules.

                            Where both members of a Bench have recused, the Bench cannot transfer the company petitions on the judicial side to another Bench. Under Rule 16 of the National Company Law Tribunal Rules, 2016, the power to transfer a case or withdraw work lies with the President, so the matters had to be placed before the Acting President or President for administrative assignment. The Tribunal declined to decide which Bench should hear the petitions and left that issue to the President. The transfer order was therefore set aside, and the matters were directed to be placed before the President for appropriate orders.




                            Issues: Whether a Bench, after both members recused from hearing the matters, could itself transfer the company petitions to another Bench, or whether the matter had to be placed before the President for appropriate administrative orders.

                            Analysis: The order under challenge recorded that both members had recused from taking up the matters. In that situation, the proper course was not for the recused Bench to transfer the cases on the judicial side. Rule 16 of the National Company Law Tribunal Rules, 2016 vests in the President the power to transfer a case from one Bench to another and to withdraw work or a case from a Member. Once recusal was recorded, the matters ought to have been placed before the Acting President or President on the administrative side for assignment or transfer to an appropriate Bench. The Tribunal also declined to decide whether the petitions should be heard at the Principal Bench or any other Bench, leaving that question to the President.

                            Conclusion: The transfer order could not be sustained and was set aside. The matters were directed to be placed before the President for appropriate orders under Rule 16(d) of the National Company Law Tribunal Rules, 2016.


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