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IN THE HIGH COURT OF DELHI AT NEW DELHI
Dhirubhai Naranbhai Patel, Jyoti Singh, JJ.
Fozia Rahman - Appellant
Versus
Union Of India & Ors. - Respondents
Civil Writ Petition No. 3536 of 2020, Civil Miscellaneous Application No. 12580 of 2020, 2088, 9900 of 2021
Decided On : 05-10-2021
Quo Warranto - National Company Law Appellate Tribunal - The court disposed of the petition seeking to quash the appointment of an officiating Chairman of the NCLAT as the appointment had become infructuous.
Fact of the Case:
The petitioner sought to quash the appointment of an officiating Chairman of the NCLAT, but the respondent submitted that the appointee was no longer holding the office, making the relief sought infructuous.
Finding of the Court:
The court found that the relief sought in the writ petition had become infructuous and no purpose would be served in keeping the petition pending.
Issues: The main issue was the validity of the appointment of the officiating Chairman of the NCLAT, which became moot due to the appointee no longer holding the office.
Ratio Decidendi: The court decided to dispose of the petition as the relief sought had become infructuous.
Final Decision: The petition was accordingly disposed of along with pending applications.
JUDGMENT
D.N. Patel, CJ. - Present writ petition has been preferred seeking the following reliefs:-
"(i) Issue a writ of quo warranto or any other appropriate writ, order or direction thereby quashing the impugned Notification no. S.O. 1049(E) [F. No. A-12023/4/2019-Ad-IV] dated 12.03.2020 issued by the Respondent No. 1 appointing the Justice (Retd.) Shri Bansi Lal Bhat as officiating Chairperson of the Honble NCLAT;
(ii) Issue an appropriate writ, order or direction thereby quashing / setting aside Rule 10 of the Tribunal, Appellate Tribunal and other Authorities (Qualifications, Experience and other Condition of Service of Members) Rules, 2020, if it is to be read/interpreted as permitting the Central Government to appoint any Member, irrespective of their Seniority, as "Acting/Officiating Chairperson" of the NCLAT in the event of the occurrence of any vacancy as well as being ultra vires to Section 415 of the Companies Act, 2013 and other relevant provisions of the Companies Act, 2013
(iii) Issue a writ of mandamus commanding the Respondent No. 1 to appoint an officiating/Acting Chairperson of the Hon' ble NCLAT as per relevant applicable laws and rule;
(iv) Issue such other writ, direction or order, which this Hon'ble Court may deem fit and proper under the facts and circumstances of the case."
2. When the matter is called out, there is no appearance on behalf of the Petitioner.
3. We have heard learned counsel appearing on behalf of Respondent No. 1, who submits that Justice (Retd.) Shri Bansi Lal Bhat, who was appointed as Officiating Chairman of National Company Law Appellate Tribunal (NCLAT) and whose appointment was assailed in the present petition, is no longer holding the said office and the relief sought is now infructuous.
4. In view of the aforesaid submission, we are of the view that the relief sought in the writ petition has become infructuous and no purpose will be served in keeping the same pending.
5. Petition is accordingly disposed of along with pending applications.
The principle of quo warranto was applied to determine the validity of the appointment of the officiating Chairman of the NCLAT.
A writ petition becomes infructuous if the subject of the petition is no longer valid or relevant due to changes in status, such as an appointment ceasing to exist.
The selection of NCLAT Technical Members must adhere to statutory qualifications, and courts cannot substitute the decisions of expert committees unless serious misconduct is alleged.
Courts will not entertain pleas for extension of tenures when members have accepted initial appointments and when such extension would interfere with ongoing selection processes.
Enforcement of judicial directions requires timely action from lower courts; supervisory powers of higher courts can compel compliance when justice is delayed.
Condition precedent for invocation of Section 241(2) of the Act, which requires the Central Government to come to an opinion that the affairs of the company “are being conducted in a manner prejudici....
The main legal point established in the judgment is the importance of adjudicatory experience and the role of the Search-cum-Selection Committee in making recommendations for the appointment of the C....
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