NCLT & NCLAT Benches are commercial Khap Panchayats!

NCLT finally passed an Order on INCAB matter. I refer some highlights of it.

Before the NCLT we sought the impleadment of State of Jharkhand seeking the status on the 177 acres of land owned by INCAB whereas ld. NCLT ruled that the same is owned by TATA STEEL in view of a purported Deed of Agreement with State of Jharkhand in 2005! Does NCLT have jurisdiction to decide the status of a land (granted under Government Grants Act, 1895 in the year 1912, 1919 and 1929 by English to TATA STEEL by acquisition of the same from the Tribal people of the Kalimati area, which is now Jamshedpur, forcibly under Land Acquisition Act, 1894) through three Deeds of Conveyance in Jharkhand? It raises question on its jurisdiction though there was no such issue in our application and then proceeds to decide as if we filed a suit for declaration of title! Goodness! It then says that Government Grants Act, 1895 was not applicable inasmuch the same is not mentioned in the Deed of Conveyance! Goodness! When I was arguing the matter and referred the Government Grants Act, 1895 by furnishing one page document the technical member asked to provide the whole of the Act(?) and the same member says in his order that in view of no mention of that Act in the Deeds of Conveyance the same was not a Government Grant! Goodness! Then how come 350 acres of the Grant of TAYO Land is a Government Grant inasmuch the same is also not mentioned in the Deed of Conveyance? Goodness! I referred Hon'ble Supreme Court Order in favour of TATA STEEL in (2015) 15 SCC 55 but there is no mention of the same in the Order! This answered whether the Government Grants Act, 1895 was necessary to be mentioned in the Deed or not! Do we find Transfer of Property Act, 1882 mentioned in any Deed? The Order also fails to answer that even if it is assumed that the TATAS got the lease in 1983 or in 2005 how they could grant a sub-lease in 1920 to INCAB?

The ld. Bench created a new jurisprudence by stating that inasmuch the company INCAB is not a going concern Resolution Process is not required to be commenced!

The ld. NCLT states that the Workmen failed to file the issue of assignment within 180 days from the commencement of IBC, 2016 before the ld. NCLT hence they lose any such right whereas in TAYO matter the Hon'ble NCLAT has ruled that such six months period is only for fee and not an impediment to file an Application! Goodness! Lt. NCLT is not aware of law nor ready to hear the lawyers and get enlightened!

The original lenders Banks and Financial Institutions of the INCAB illegally assigned their debts to one Kamala Mill Limited and Fasqua investments P Ltd. a group company of Kamala Mills inasmuch Banks and FIs can assign their debts only to Banks and FIs under control and supervision of RBI in view of RBI guideline issued on 13.07.2005 under Section 35A of the Banking Regulations Act, 1949 read with Supreme Court Order in ICICI/bank Limited case in (2010) 10 SCC 1 on which the ld, NCLT had nothing to say. It says merely that the assignment of debts was valid but under which law it skirts answering! This is the real catch of the matter inasmuch if the assignment of debts was declared invalid, the COC comprised and dominated by Kamala Mils would have been rendered invalid preventing the ld. NCLT to pass such Order! You got it!

It further deals with Section 5(7) and 21(5). I know what I argued but don't know what the Order explains!

I referred paras 76, 78 and 86 of the order of the Hon'ble SC in Arcellormittal India Pvt. Ltd.vs. Satish Kumar Mittal in (2019) 2 SCC 1 however, ld. NCLT ignored that totally in its discretion.

It ignored the Hon'ble Delhi High Court Order dated 06.01.2016 in which both Kamala Mills and Pegasus were declared land sharks. It is now revealed that the Pegasus was acting on behalf of TATAS so the real land sharks are TATA STEEL and the Kamala Mills, one eyeing 177 acres of land at Jamshedpur and the other eyeing 36 acres of land at PUNE!

However, there is a bright spot also. The Order allows the Workmen to file fresh proposal for its revival before the liquidator. I was in fact expecting another jurisprudence on this also!

How are such orders passed, don't you know?

The link to the Order is below,

https://nclt.gov.in/…/CP%20IB%20NO%201684%20OF%202018_compr…