Pending Companies Act matters to be transferred to NCLT

The Ministry of Corporate Affairs  has issued a notification stating that pending proceedings under the Companies Act – with some exceptions – shall be transferred from the district and high courts to benches of the National Company Law Tribunal, with effect from December 15.

The Centre has taken this step in lieu of its power under Section 434(1)(c) of the Companies Act 2013, under which it was empowered to specify a date on which pending matters relating to arbitration, compromise agreements and reconstruction and winding up of companies would stand transferred to NCLT benches.

Under the Companies (Removal of Difficulties) Fourth Order of 2016, all cases related to winding up pending in high courts wherein petitions have not been served on the respondents, shall be transferred. Moreover, the notification also states that matters other than those relating to winding up, in which orders have been reserved by high courts, shall not be transferred.

The Companies (Transfer of Proceedings) Rules 2016 also states that those cases pending before high courts relating to voluntary winding up of companies shall not be transferred. The Rules also clarify that no fee would be payable for these transfers.

The government has also notified as many as eighteen provision of the 2013 Companies Act to come into force this week. These include variation of shareholder rights, reduction of share capital, compromises, arrangements and amalgamations.

Judiciary: Soul of the Constitution

Free and fair judiciary is the soul of the Indian Constitution. By its pro-activeness the Indian judiciary has overcome the orthodox constitutional philosophy and has expanded the scope of right to life so as to read within its compass the right to live with dignity, right to healthy environment, right to humane conditions of work, right to know, right to adequate nutrition and clothing and so on. While dispensing with justice in civil, criminal or constitutional matter a judge not being a party to the Lis always decides the Lis impartially with the best of his ability and knowledge. A judge is deemed to have no knowledge of law but he is enriched by the knowledge of the Learned Councils of both sides. Sitting in the Chair of the Temple of Justice he listens patiently both the parties and comes to a decision which being the toughest job is avoided by the others. While deciding a Lis he cannot satisfy both the parties at a time. Any person being aggrieved by a decision of the court may carry the Lis to the higher forum in appeal or revision or may prefer review of the decision in the same court. This is the eternal beauty of the Indian Judiciary.

Any sort of interference in the functioning of the court in dispensing with justice amounts to contempt; which may be civil or criminal. The Supreme Court being highest body of the Indian judiciary is the custodian of the Constitution and its judgment is binding upon all citizens under Article 141 of the Constitution. Unlike the Supreme Court the High Court of each State is also the Court of Records and enjoys with writ and supervisory jurisdiction under Article 226 and 227 of the Constitution. The Parliament and the State Legislature have right to enact law in their respective field but if such law contradicts with the basic structure of the Constitution or abrogates the fundamental rights guaranteed under Part III of the Constitution the judiciary has right to declare the same as void. That being the settled principle of law it is frequently noticed that some persons constantly attack the judiciary and make indecent statement which knocks down the very foundation of the Indian democracy. It is sadly enough that they are not illiterate or rustic persons but they are educated and sometimes hold responsible status in public life.  

A healthy democracy is a nightmare if Judiciary does not function freely, fairly and independently. To ensure free, fair and independent judiciary the peaceful environment of the court compound is very much essential so that a judge while dispensing with justice remains in peaceful mind and does not face extraneous situation in the court compound. A judge does not fall from the heaven but he is a man of the society with all common virtues of an ordinary man. A chaotic atmosphere inside the court room and also in the court compound distracts the thought-process of a judge. It is therefore, duty of the police to maintain peace and tranquility in and around the court compound. Excepting the Supreme Court and High Courts of different States we hardly find peaceful environment in the subordinate courts particularly the Magistrate Courts.

Recently we saw an unfortunate incident at Alipore Magistrates’ Court which makes this issue afresh. After arrest of one political leader cum minister by the CBI in multi-crores Sarada scam he was taken to produce before the Magistrate’s Court. Thousands of his supporters and party members came on the street, blocked all the public roads and railway tracks in protest of such arrest ignoring the sufferings of the people. Such acts are not only offences under Indian Penal Code but also offence under the provisions of the National Highway Act. The situation turned worst when the Chief Executive of the State joined hands with the law breakers. A panicky situation was also created inside the court compound by unlawful assembly of thousands of unruly persons in presence of police with shouting and slogans as if the court compound was situated in the State of lawlessness. Similar situation was also noticed inside the court room. Such a horror atmosphere is not congenial to a judge in dispensing with justice. It is no doubt an attempt to terrorize a judge by way of power projection which amounts to criminal contempt of the court also.

What wrong the CBI did? Has the CBI been ordered by the Central Government to investigate the Sarada Scam to malign the State Government? No. It is the Supreme Court of India that entrusted the CBI to investigate the Saradha scam spreading over not only in the State of West Bengal but in the States of Tripura, Assam and Orissa also. If the State machinery feels that the CBI has not been working in accordance with law it may approach the Supreme Court for suitable direction upon the CBI. Instead of doing so demonstration in front of the office of the CBI under the leadership of a State Minister and paralyzing the State in protest of arrest of their leader cum minister are ultimately an act of challenging the authority of the highest Court of India and also interference with independent functioning of the judiciary which will not be approved by any civil society. It is very sad to say that the innocent people were led to rise voice on the street by some persons with vested interest in favour of a person who is not only an accused of economic offence but who destroys the trust of the common people also under the cover of the constitutional oath.

http://echoofindia.com/reflex-action/judiciary-soul-constitution-74221