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2020 (8) TMI 699

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..... 9 onwards the Bench at Ahmedabad had no jurisdiction to exercise with regard to matters arising from the State of Madhya Pradesh - When these Appeals were filed, Notices were issued to not only Registrar, NCLT, Ahmedabad Bench but also to Registrar, NCLT, Principal Bench, New Delhi asking them to file Affidavits. It was recorded in proceeding dated 20.08.2019 to issue Notice to Respondents as to why the concerned cases pending before NCLT, Ahmedabad Bench, Ahmedabad be not transferred to Indore Bench, Madhya Pradesh pursuant to the above Notification dated 8th March, 2019. The Order dated 20.08.2019 further directed the Ahmedabad Bench not to hear the case on merits and to adjourn the same to subsequent dates till final Orders are passed in these Appeals. These Appeals were filed on the basis that by Notification dated 8th March, 2019, the Ahmedabad Bench lost jurisdiction over matters relating to State of Madhya Pradesh. By Notification dated 31st January, 2020 which has now been issued by the Ministry of Corporate Affairs, the foundation for maintaining these Appeals has been lost. Although the learned Counsel for Appellant is trying to argue regarding the validity and legalit .....

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..... of 2019 for convenience. 3. The question of law raised in these Appeals (as in Company Appeal (AT) No.227 of 2019) is:- Whether after notification, dated 08.03.2019, the NCLT, Ahmedabad has jurisdiction over TP-122/397- 398,58-59,235(2),237(b)NCLT.AHM/2016(New) and other connected matters, which pertain to the State of Madhya Pradesh? 4. The Appeals further claim whether it was correct on the part of NCLT, Ahmedabad to list the matters for final hearing and not advert to the above Notification dated 8th March, 2019. The Appeals seek stay to the further proceedings before NCLT Ahmedabad. 5. It would be appropriate to refer to the concerned Notification. The first Notification relevant is of 1st June, 2016. Relevant portion of the same for the present matter may be reproduced:- NOTIFICATION New Delhi, the 1st June, 2016 S.O. 1935(E).--In exercise of the powers conferred by sub-section (I) of section 419 of the Companies Act, 2013 (18 of 2013), the Central Government hereby constitutes the following Benches of the National Company Law Tribunal mentioned in column (2) of the table below, located at the place mentioned in column (3) and to exercise the .....

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..... t. Secy Note: The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), vide number S.O. 1935(E), dated the 1st day of June, 2016 and subsequently amended vide number S.O. 345(E), dated the 3rd February, 2017, number S.O. 3145 (E), dated the 28th June, 2018, number S.O. 3430 (E), dated the 12th July, 2018 and number S.O. 3683 (E), dated the 27th July, 2018. This was published in The Gazette of India dated Friday, March 8, in Extraordinary, Part II, Section 3, Sub-section (ii). 8. The present Appeals have been filed referring to this Notification dated 8th March, 2019 to claim that from 8th March, 2019 onwards the Bench at Ahmedabad had no jurisdiction to exercise with regard to matters arising from the State of Madhya Pradesh. 9. When these Appeals were filed, Notices were issued to not only Registrar, NCLT, Ahmedabad Bench but also to Registrar, NCLT, Principal Bench, New Delhi asking them to file Affidavits. It was recorded in proceeding dated 20.08.2019 to issue Notice to Respondents as to why the concerned cases pending before NCLT, Ahmedabad Bench, Ahmedabad be not transferred to Indore Bench, Madhy .....

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..... 13. The Respondents in these Appeals have filed IAs under Rule 11 of NCLAT Rules, 2016 seeking vacating of the stay Orders dated 20.08.2019 in view of issue of such Gazette Notification by the Central Government. For convenience, we are referring to the IA No.631 of 2020 filed by the Respondent in Company Appeal (AT) No.227 of 2019. The Respondents have referred to the said Order dated 20.08.2019 which was passed by this Tribunal staying the proceedings before the Bench at Ahmedabad and now refer to this Notification dated 31st January, 2020 to claim that appropriate directions/Orders to vacate the stay may be passed and further Orders deemed fit may be passed. 14. The Counsel for Appellant has filed Replies to said Applications filed in the three Appeals (see Diary No.19400 in I.A. No.631 of 2020 in Company Appeal (AT) No.227 of 2019) and it is claimed that the Order dated 20.08.2019 passed by this Tribunal was challenged by the Respondents before the Hon ble Supreme Court which was disposed by Hon ble Supreme Court vide Order dated 15th November, 2019 and thus, there was doctrine of merger and thus, this Tribunal cannot now vacate or modify the said Order. It is also clai .....

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..... ing the validity and legality of the Notification dated 31st January, 2020, we find that already High Court of Madhya Pradesh was moved by the Appellant - PHG International Private Limited in Writ Petition No.4479 2020 which has considered this very Notification dated 31st January, 2020 and dismissed the same. Appellants can pursue remedies as available in law. However, it appears to us that with Notification dated 31.01.2020 issued by Central Government, we have no reason to keep these Appeals pending and stay operating. That will affect other proceedings also before Bench at Ahmedabad which is not in public interest. We hold that all these three Appeals have become infructuous considering the further developments. 18. The learned Counsel for the Appellant also painstakingly argued before us to demonstrate that the Notification dated 31st January, 2020 is not legal. We need not enter into that aspect as the issue Appellants have raised in Writ Petition and Hon ble High Court of Madhya Pradesh has considered and disposed it. 19. Considering the Notification dated 1st June, 2016 read with the Notification dated 8th March, 2019, read with the present Notification dated 31st J .....

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