Subhash Chandra, CJP Protest FIRs, New Chief Justices for High Courts, And More

“Our role, as representatives of the justice delivery system, is much like that of a load-bearing wall within a building. No architect ever photographs it for the brochure, and yet no building stands without it.”

-CJI Surya Kant about role of judiciary at the BRICS Chief Justices Forum

Subhash Chandra case and NCLT
The Subhash Chandra insolvency case has become an institutional oddity at the NCLT for reasons beyond the proposed approval of the over 99% haircut against claims of over 220 billion rupees. After the original two judge bench delivered a split verdict - one approving the repayment plan and the second rejecting it - the third judge appointed to break the deadlock greenlit the repayment plan, albeit with different conditions from the first judge. The third judge extinguished the rights of the creditors that were opposed to the repayment plan in a move that was diametrically opposed to the views of the first judge who wanted to leave the rights open.

Ultimately, the original bench was compelled to hold that no majority view on the issue had emerged, leaving the bench unable to pass an enforceable judgment. In an unusual turn of events, the case had to be placed before the President of the forum who proceeded to set up a five-judge bench to re-hear the case.

Meanwhile, appeals have already been filed before the appeals tribunal, which now remain pending given that a larger bench at the NCLT will look into the matter. Subhash Chandra has opposed the formation of this five-judge bench before the appellate tribunal while some other parties questioned the larger bench’s decision to stay only the third judge’s opinion which bound all the creditors by the repayment plan.

While this case remains in a limbo at the moment, it is certain to answer, for posterity, several questions relating to the institutional strength of the NCLT and the personal insolvency regime.

Key Rulings:

Courts:

• Supreme Court has ruled that the Bar Council of India does not have the power to take disciplinary action against law students
• Delhi High Court rejects PIL against closure of old Visakhapatnam airport, asks petitioner to approach the Andhra Pradesh High Court
• Delhi High Court asks the state government to expedite the process of filling RERA vacancies
• Supreme Court orders quashing of all FIRs against protestors who participated in CJP protests in July; the outfit called off its proposed march
• Delhi High Court orders forensic audit of Fortis share transactions in Daiichi Ranbaxy case
• Supreme Court refuses to entertain PIL for mandatory disclosure of ethanol content in fuel at petrol pumps

Quasi Courts:

• NCLT’s Chennai bench has questioned the 1% success fee charged by the firm Ernst & Young in a GST case and has directed ICAI to examine the matter
• In Subhash Chandra case, NCLT’s Delhi bench says third judge’s ruling on repayment plan doesn’t offer a majority view, no enforceable order can be passed
• NCLT Delhi bench sets up a five-judge bench to re-hear Subhash Chandra case
• NCLAT keeps pending appeals in the Subhash Chandrea case after NCLT’s bigger bench decides to re-hear case

The Big Listings:

• Sep 9: Andhra Pradesh High Court to hear PIL against Google’s proposed data centre in Visakhapatnam
• Sep 9: Bombay High Court to hear Vijay Mallya’s plea against an order of special criminal court
• Oct 5: Securities Appellate Tribunal to continue hearing appeal by Jane Street challenging SEBI’s move to allegedly refuse access to important documents to the firm in the case against it

* The dates of hearing can change and a concrete list is prepared just a day before

Legal Moves:

• Centre notifies appointment of:

1. Justice Mahesh Chandra Tripathi as the chief justice of Bombay High Court
2. Justice RV Ghuge as chief justice of Calcutta High Court
3. Justice V Kameswar Rao as chief justice of Patna High Court
4. Justice Pushpendra Singh Bhati as chief justice of Jammu & Kashmir and Ladakh High Court
5. Justice Ashwani Kumar Mishra as chief justice of Punjab & Haryana High Court
6. Justice AY Kogje as chief justice of Madhya Pradesh High Court
7. Justice Krushna Ram Mohapatra as chief justice of Chhattisgarh High Court
8. Justice Sanjay Kumar Agarwal as chief justice of Rajasthan High Court

• Nitin Saluja leaves AZB Partners to join Saraf & Partners
• Saurav Kumar, Swathi Sreenath and team leave CMS Induslaw to join Argus Partners
• Jyoti Maheshwari joins ANM Global as partner
• Tapan Chauhan leaves Pernod Ricard to join Amazon as Director Legal
• Rahul Dhote, Varunraj Limaye and Venkatesh Seshan join White & Brief