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NCLAT quashes NCLT order making MCA a party to all IBC proceedings

Allowing the plea filed by the MCA, a two-member bench of the appellate tribunal said the NCLT's direction was "beyond the power" and amounted to "imposition of a new rule in a compelling fashion".

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The NCLAT said the order was passed by the NCLT to ensure that authentic record is made available by the MCA officers for proper appreciation of the matter but “such a wholesale, blanket and omnibus directions cannot be issued in single stroke”.

Agencies New Delhi
The National Company Law Appellate Tribunal (NCLAT) has set aside an NCLT order to implead the Ministry of Corporate Affairs (MCA) as a party in all proceedings related to insolvency and company matters before it.

Allowing the plea filed by the MCA, a two-member bench of the appellate tribunal said the National Company Law Tribunal’s (NCLT’s) direction was “beyond the power” and amounted to “imposition of a new rule in a compelling fashion”.

Earlier, in an order on November 22, 2019 the principal bench of the NCLT had directed to make the MCA a party in all applications filed under