'Having NCLT Benches At Different Locations Causes Administrative Difficulties': Delhi High Court Orders Status Quo On Space Vacated By MNRE

The Delhi High Court has recently directed the maintenance of status quo with regards to the occupation, renovation or construction of the space vacated by the Ministry of New and Renewable Energy in the building, where the National Company Law Tribunal (NCLT) is located, till May 4, 2022.

A division bench comprising of Acting Chief Justice Vipin Sanghi and Justice Navin Chawla was of the view that having different Benches of the NCLT at different locations, is bound to cause administrative difficulties in the functioning of the NCLT, as well as difficulties for the Advocates and litigants.

"It goes without saying, that the entire institution should be housed at one place, if the institution which requires the assistance and coordination of the Bar, has to run efficiently," the Court said.

The Bench was dealing with a plea filed in the year 2018 by NCLT Bar Association raising grievances about several deficiencies at the premises of National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT).

In September 2019, while appreciating the problems being faced by the petitioner, the Court had taken note of the fact that the NCLT was operating on the sixth, seventh and eighth floors of the building in question, wherein, other institutions were operating on the ground, first and second floors.

The Court had the observed that rather than providing space admeasuring 11,860 square feet at the first floor for setting up two additional Benches of the NCLT, the space on the ground, first and second floor of the same building could be made available to NCLT and instead, the space of 11,860 square feet could be allocated to other Government departments.

Pursuant to the aforesaid, a response was filed by the Deputy Director of Estates in the Ministry of Housing and Urban Affairs, disclosing that the Ministry of New and Renewable Energy was constructing its own building, which would be completed by October 2020 and that the first floor of the building in which the NCLT is currently housed, would be vacated by December 2020.

During the recent course of hearing, Senior Panel counsel Bharathi Raju appearing for the Centre apprised the Court that the Ministry of New and Renewable Energy vacated the first floor of the said building where the NCLT is housed, and that the same had been allocated to other Ministries.

"This action of the Director of Estates appears to be in complete disregard of the Order passed by this Court on 17.09.2019. There appears to be absolutely no application of mind to either the problems being faced by the Advocates practicing in the NCLT, or even the litigants," the Bench observed at the outset.

The Court was of the view that the concerned authorities did not give due consideration to the Court's order and no reasons were placed for not providing the vacated first floor for use by the NCLT in the same building and allotment of the same to other departments.

"Having different Benches of the NCLT at different locations, is bound to cause administrative difficulties in the functioning of the NCLT, as well as difficulties for the Advocates and litigants," the Court added.

Taking note of the fact that since the first floor of the building became available with the vacation of the said floor by the Ministry of New and Renewable Energy, the Court was of the view that the area should have been allotted to the NCLT in preference over any other Ministry. It added that the area earlier allotted to the NCLT admeasuring 11,860 square feet could, instead, be allotted to the other Ministries.

"We direct the Director of Estates to file a specific affidavit in this regard. We also direct maintenance of status quo with regard to the occupation, renovation or construction of the space vacated by the Ministry of New and Renewable Energy in the building, where the NCLT is located, till the next date," the Court directed.

The matter will now be heard on May 4.

Case Title: NCLT BAR ASSOCIATION THR ITS SECRETARY GENERAL v. UNION OF INDIA AND ORS

Click Here To Read Order