NCLT Kolkata Pulls Up Insolvency Professional For Appearing In Vest During Virtual Hearing, Issues Contempt Notice

The National Company Law Tribunal at Kolkata has recently issued a criminal contempt show-cause notice to insolvency professional Subrato Ghosh for appearing in a virtual hearing wearing only a vest/baniyan. The incident took place during the insolvency proceedings initiated by SREI Equipment Finance Ltd against Samsara Energy Ltd.

A coram of Judicial Member Labh Singh and Technical Member Rekha Kantilal Shah noted that young lawyers, most of whom are women, regularly appear before the Tribunal and Ghosh's conduct amounted to an intentional insult on the bench.

“We are of the view that Mr. Subarto Ghosh has appeared before this Tribunal intentionally to insult the Bench when the matter was being taken up for hearing in presence of women Members of the Bench, Staff and Bar., it said. 

Citing the legal provisions governing contempt, the tribunal said the conduct clearly fell within the definition of criminal contempt,

“Thus, appearing in a baniyan (vest/undershirt) before a court in amounts to contempt as defined in Section 2 (c)(i) of theContempt of Court Act 1971. The said act of Mr. Subrato Ghosh, Insolvency Professional violates basic courtroom decorum and professional standards and insult to this Tribunal which is a court for the purpose of judicial proceedings.”

Invoking Section 425 of the Companies Act, the triunal said that its contempt powers mirror those of a High Court. Referring to the Supreme Court decision in R K Garg versus State of Himachal Pradesh, the tribunal said that using the virtual mode to appear in an undergarment amounts to an abuse of the process and warned that such violations undermine the foundations necessary for a functioning democracy.

"It is our duty to maintain decorum of the court during judicial proceedings and no one can be allowed to misuse the liberty granted to him to appear in undergarment through virtual mode and such a flagrant violations of professional ethics and cultured conduct will result in ultimate destruction of a system without which no democracy could survive", it said. 

The tribunal has directed Ghosh to explain why criminal contempt proceedings should not be initiated against him and why the matter should not be referred to the Insolvency and Bankruptcy Board of India for disciplinary action by the next date of hearing. 

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