NCLAT rules NCLT President can transfer cases across benches

The National Company Law Appellate Tribunal (NCLAT) has ruled that the President of the National Company Law Tribunal (NCLT) possesses the authority to transfer cases across different benches, regardless of territorial jurisdiction.

A three-member bench delivered the decision while reviewing insolvency proceedings involving Kamlesh Rani Singla, a personal guarantor for Laxmi Pipes Limited. The case involved a dispute over whether proceedings should be transferred from New Delhi to the NCLT Chandigarh bench.

The NCLAT’s ruling disagrees with a previous Gujarat High Court interpretation which suggested the NCLT President's authority was confined to benches within the same territorial limits. The tribunal held that Rule 16(d), in conjunction with Section 60(2) of the Insolvency and Bankruptcy Code and Rule 2(7) of the NCLT Rules, provides sufficient power for such transfers.