Up to date: October 24, 2020 1:10:50 am
Former Nationwide Firm Legislation Appellate Tribunal (NCLAT) chairperson and retired Supreme Court docket decide Justice S J Mukhopadhaya has been appointed to a 17-member world advisory board of the Gupta Household Group (GFG) alliance. The brand new board will assist the alliance “in delivering its strategic priorities and attaining greatest follow within the surroundings, social and governance”, the alliance stated in a press release.
Throughout his tenure because the NCLAT Chairperson, Justice Mukhopadhaya had presided over some instances of insolvency and chapter, by which the Liberty Home group was a bidder for bancrupt firms.
The GFG Alliance which has the Liberty Metal Group, the Alvance Aluminium Group and the SIMEC Power Group underneath its umbrella, had introduced the appointment of those 17 consultants on October 13. Justice Mukhopadhaya is the one appointee from India on the worldwide board.
Mails despatched to the GFG Alliance, searching for particulars about what could be the scope of labor of Justice Mukhopadhaya and his tenure remained unanswered. Justice Mukhopadhaya, who was appointed as the primary chairperson of NCLAT in 2016, had retired on March 13 this yr, having accomplished his tenure.
The NCLAT has remained with out an appointed head ever since. Justice Bansi Lal Bhat, a former decide of the Jammu and Kashmir Excessive Court docket, took over because the performing chairperson of NCLAT on March 15 and has been heading the appellate tribunal since then. He’s more likely to proceed because the performing chairperson till at the very least December 31 this yr, senior officers stated.
Officers on the Ministry of Company Affairs (MCA), the nodal ministry for the appointment of members to the NCLAT in addition to the Nationwide Firm Legislation Tribunal (NCLT), stated they weren’t conscious of Justice Mukhopadhaya’s appointment to the GFG Alliance board. The officers, nevertheless, added there was no rule which mandates MCA being knowledgeable.
“There is no such thing as a prescribed cooling-off interval or the requirement of informing the MCA as such. As soon as a member retires after their tenure, what they do is none of our concern. There is no such thing as a rule for informing the MCA both,” a senior official stated.
One such firm, for which the Liberty Home had bid after which withdrawn its supply was Amtek Auto. The company insolvency decision technique of the corporate, which stays pending greater than three years after it was initiated, had seen Justice Mukhopadhaya declaring to the Liberty Home group that it was not following by way of with its decision plan.
“You’re a failure occasion…on a regular basis dragging your ft. You might be in dangerous popularity. We won’t let you benefit from the appellate tribunal,” a two-member Bench of the NCLAT, then headed by Justice Mukhopadhaya had noticed.
Later, throughout one other listening to within the case, the appellate tribunal had additionally requested the MCA if it may move an order for the arrest of administrators and house owners of firms which had been profitable decision applicant, however had been unwilling to implement the decision plan after approval.
The Liberty Home group had emerged as the best bidder for Amtek Auto, which owes greater than Rs 12,300 crore to the banks. Nonetheless, when the decision skilled (RP) and the lenders to Amtek Auto moved to implement the decision plan, the corporate stalled its plan, claiming that the data given to it by the RP didn’t match the situations on the group and that it was misled.
Liberty Home Group had then additionally informed the NCLAT that there have been valuation variations between the Amtek Auto’s information on paper and on floor.
An order of liquidation towards Amtek Auto, handed by the Justice Mukhopadhaya in his capability because the NCLAT chairperson, in August final yr, was challenged within the Supreme Court docket, and stays pending there.
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