NCLT Mumbai: Court VI Functioning Suspended Due to Vacancies

• The NCLT Mumbai Bench's Court VI has been temporarily suspended from October 13 due to tribunal member vacancies.
• An administrative order dated October 9 directed the transfer of all pending cases from Court VI to the five other Mumbai Bench courts.
• The suspension was approved by the NCLT President under Rule 16(d) of the National Company Law Tribunal Rules, 2016.
• Cases under IBC Sections 7, 9, 10, and 95 are affected, with Section 7 cases divided by serial number and Section 9 cases also distributed.
• Court officers are instructed to transfer records and list redistributed matters for their next scheduled hearing dates.

Lawyers practicing before the NCLT Mumbai Bench, particularly those with matters previously assigned to Court VI, must immediately identify the new court assignment for their cases.

The National Company Law Tribunal (NCLT) has temporarily halted the operations of Court VI at its Mumbai Bench, effective from October 13. This decision, formalized through an administrative order issued on October 9, stems directly from existing vacancies in the tribunal member positions. The suspension is not permanent and will remain in force until further directives are issued by the NCLT.

The authority for this significant administrative action was granted by the NCLT President, acting under the provisions of Rule 16(d) of the National Company Law Tribunal Rules, 2016. This rule empowers the President to make such arrangements in response to operational necessities, such as member vacancies, to maintain the tribunal's functioning.

The redistribution encompasses a broad spectrum of cases filed under the Insolvency and Bankruptcy Code (IBC), 2016. Specifically, matters initiated under Sections 7, 9, 10, and 95 of the IBC are affected. Cases under Section 7, which pertain to insolvency proceedings initiated by financial creditors, have been meticulously divided into five distinct groups based on their serial numbers as detailed in an annexure to the order. Similarly, cases brought by operational creditors under Section 9 have also been systematically allocated across the five active courts.

The administrative order explicitly directs all concerned court officers to facilitate the seamless transfer and receipt of relevant case records. Furthermore, these officers are tasked with ensuring that all redistributed matters are promptly listed for their next scheduled hearing dates in their newly assigned courts. This measure aims to minimize disruption to ongoing insolvency and bankruptcy proceedings.

Lawyers practicing before the NCLT Mumbai Bench, particularly those with matters previously assigned to Court VI, must immediately identify the new court assignment for their cases. This requires reviewing the administrative order to ascertain the redistributed court and adjusting hearing schedules and client communications accordingly, especially for matters under IBC Sections 7, 9, 10, and 95. The temporary suspension of Court VI underscores the dynamic nature of tribunal operations and the need for practitioners to stay abreast of administrative changes.

Lawyers practicing before the NCLT Mumbai Bench, particularly those with matters previously assigned to Court VI, must immediately identify the new court assignment for their cases. This requires reviewing the administrative order to ascertain the redistributed court and adjusting hearing schedules and client communications accordingly, especially for matters under IBC Sections 7, 9, 10, and 95.

Source: Original reporting via legal news outlet