In a recent development, the Supreme Court has taken a resolute stance against what it perceives as non-compliance with its directives by the National Company Law Appellate Tribunal (NCLAT). The apex court, led by Chief Justice of India DY Chandrachud, has issued a significant INR 1 crore fine to a litigant involved in a case related to the disclosure of the Annual General Meeting (AGM) results of Finolex Cables.
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The dispute revolved around the court’s October 13 order, which explicitly instructed NCLAT to proceed with its judgment and announce the AGM results only after obtaining the scrutinizer’s report. However, it has come to light that NCLAT failed to adhere to these instructions, purportedly violating the Supreme Court’s orders issued earlier the same day.
During the proceedings, the court meticulously reviewed CCTV footage and its corresponding transcript, scrutinizing the actions of the NCLAT, particularly its judicial and technical members. Chief Justice Chandrachud emphasized that this decision should serve as a poignant reminder, not only to NCLAT and National Company Law Tribunal (NCLT) members but to all tribunals. The Supreme Court has taken a strong stance in ensuring the sanctity of its orders, signaling its unwavering commitment to upholding the rule of law.
