NCLAT dismisses appeal against judicial members' recusal decision, emphasizes transparent proceedings and prohibits private counsel-judge communications

The NCLAT dismissed an appeal challenging an order where both NCLT members recused themselves from proceedings. The tribunal emphasized that judicial proceedings must be conducted transparently in open court, and private communications between counsel and judges are prohibited. Citing SC precedents, the NCLAT held that decisions by judicial members to recuse themselves cannot be interfered with through appellate jurisdiction. The tribunal noted that administrative powers vest with the NCLT President, who can address such matters through appropriate administrative measures. The appeal was dismissed as serving no purpose.

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Issues Involved:
1. Recusal of Members from hearing applications.
2. Alleged improper communication by counsel.
3. Transfer of matters by the President of NCLT.

Summary:

1. Recusal of Members from Hearing Applications:
The appeal was filed against an order dated 09.01.2024 by the National Company Law Tribunal (NCLT), Ahmedabad, where both members recused themselves from hearing various applications related to the Corporate Insolvency Resolution Process (CIRP) of Essar Steel India Limited. The recusal followed an email sent by the counsel for the respondent, which was deemed improper. The appellate tribunal noted that the decision of the members to recuse themselves cannot be interfered with in appellate jurisdiction.

2. Alleged Improper Communication by Counsel:
The appellant argued that the email sent by the respondent's counsel to the judicial member of NCLT was highly objectionable and constituted interference with judicial proceedings. The tribunal emphasized that private communications with judges relating to pending cases are forbidden, as per the Bar Council of India rules and Supreme Court precedents. The email dated 08.01.2024 was not part of any official court proceeding and should not have been sent directly to the judicial member.

3. Transfer of Matters by the President of NCLT:
Following the recusal, the President of NCLT transferred all related applications to Court II of the NCLT, Ahmedabad, by an order dated 17.01.2024. The appellate tribunal highlighted that the President of NCLT has the administrative authority to transfer cases and manage the roster. The tribunal concluded that no purpose would be served in entertaining the appeal, as the matter had already been appropriately reassigned.

Conclusion:
The appeal was dismissed, with the tribunal affirming the recusal of the members and the subsequent transfer of matters by the President of NCLT, stressing the importance of proper judicial conduct and the administrative powers of the President.

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