The central government on Thursday moved the National Company Law Appellate Tribunal (NCLAT) against a National Company Law Tribunal (NCLT) order which directed that the Ministry of Corporate Affairs (MCA), through its secretary, and Union of India be made a respondent party in all the insolvency and company law cases filed across the country. The appellate tribunal has agreed to hear the case on Friday.
The Principal Bench of NCLT had, on November 22, directed that the MCA as well as the central government be made a respondent party in all cases of insolvency as well as Companies Act filed across the country.
The adjudicating authority had then observed that the same was needed so that authentic records of companies undergoing insolvency are made available by the officers.
It had also asked the MCA to update the master list containing the data of companies undergoing insolvency or liquidation, so as to keep the “public at large” informed about the status of the company.
Following the NCLT directive, the MCA had, on November 29, told The Indian Express that it had initiated the process of updating the master data of companies undergoing corporate insolvency or facing liquidation under the Insolvency and Bankruptcy Code (IBC).
The Ministry had also started working on a framework that would enable the interim resolution professional (IRP) or the resolution professional (RP) to upload necessary regulatory filings for compliance with the Companies Act.
Though the NCLT order was likely to increase the workload for its officials, the Ministry had till then also not made up its mind on whether it would challenge the directive, sources close to the development had then said.
At present, the master data of companies does not have updated data of new directors or other details of firms which are either undergoing corporate insolvency resolution process (CIRP) or have undergone liquidation under the IBC.
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