Until and unless a notification is issued under the first proviso to Section 419(3) of the Companies Act, 2013 the single judicial member cannot take upon itself the jurisdiction to entertain an application – Suchi Paper Mills Ltd. & Ors. Vs. Ashish Gupta RP in the Matter of Anush Finlease and Construction Pvt. Ltd. & Ors. – NCLAT New Delhi
In this case, two unnumbered applications came to be filed one by the RP and other by the Resolution Applicant seeking approval of the resolution plan approved by the CoC of the Corporate Debtor with 77.54%. Both unnumbered applications have been allowed by the Adjudicating Authority on 01.04.2020 (during COVID period) by single bench.
NCLAT New Delhi held that:
(i) It is very much clear from the bare reading of Section 419(3) of the Act that the powers of the Tribunal shall be exercisable by Benches consisting of two Members out of whom one shall be a Judicial Member and the other shall be a Technical Member but still a single Judicial Member can exercise the powers of the Tribunal in respect of such class of cases or such matters pertaining to such class of cases, as the President may, by general or special order, specify.
(ii) Until and unless a notification is issued under the first proviso to Section 419(3) the single judicial member cannot take upon itself the jurisdiction to entertain an application such like the one in hand and decide the same, therefore, the impugned order has been passed by an authority having no jurisdiction.
